What is the minimum Audit Fee for a Canine Dimensions franchise?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit Fees | Actual Cost of Audit ($250 minimum), plus the amount of deficiency and applicable late charges | As incurred. | If an audit reveals an understatement of more than 2%, or if you fail to furnish information in a timely fashion, you will pay us twice the deficient amount. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, under Item 6 regarding Other Fees, franchisees may be subject to audit fees. The audit fee is the actual cost of the audit, with a minimum charge of $250, plus the amount of any deficiency discovered and applicable late charges.
This means that if Canine Dimensions conducts an audit of a franchisee's business, the franchisee will be responsible for covering the expenses. At a minimum, the franchisee will be charged $250, even if the actual cost of the audit is lower. However, the audit fee can increase beyond this minimum if the audit uncovers any underreported sales or other financial discrepancies.
Furthermore, the FDD states that if an audit reveals an understatement of more than 2%, or if the franchisee fails to furnish information in a timely fashion, the franchisee will pay twice the deficient amount. This highlights the importance of accurate record-keeping and timely reporting to avoid potentially significant audit fees and penalties from Canine Dimensions.