What is the due date for the audit fee charged by Chocolate Fish Coffee?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Our actual cost | On demand | Payable only if (1) we audit you because | |
| you have failed to submit required reports | |||
| or other non-compliance, or (2) the audit | |||
| concludes that you under-reported gross |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, an audit fee may be charged to franchisees under specific circumstances. The due date for this fee is 'On demand.' This means that Chocolate Fish Coffee requires immediate payment upon invoicing the franchisee for the audit.
The audit fee is imposed only if Chocolate Fish Coffee audits a franchisee for two reasons: first, if the franchisee fails to submit required reports or demonstrates other non-compliance issues; second, if an audit reveals that the franchisee has under-reported gross sales. The amount of the audit fee is Chocolate Fish Coffee's actual cost for conducting the audit.
This 'on demand' payment term means a Chocolate Fish Coffee franchisee must be prepared to pay the audit fee promptly to avoid further penalties or complications. Franchisees should maintain accurate records and comply with all reporting requirements to minimize the risk of triggering an audit and incurring this fee. Understanding the conditions under which the audit fee is charged is crucial for managing the financial obligations of the franchise.