When is the Audit Fee due to Christies International Real Estate?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee (Note 1) | Amount (Note 2) | Due Date | Remarks |
|---|---|---|---|
| Audit Fee | Cost of Audit | When incurred | Payable if audit discloses an under reporting of Gross Revenues or underpayment to us by 5% or more. |
Source: Item 6 — OTHER FEES (FDD pages 14–17)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, the Audit Fee is due 'when incurred.' The cost of the audit is borne by the franchisee. This fee is payable if an audit reveals that the franchisee has underreported gross revenues or underpaid Christies International Real Estate by 5% or more.
This means that a Christies International Real Estate franchisee will only be charged an audit fee if an audit is conducted and reveals discrepancies meeting the specified criteria. It is important for franchisees to maintain accurate financial records to avoid any potential underreporting or underpayment that could trigger an audit and the associated fee.
In the franchise industry, audit fees are not uncommon. Franchisors typically reserve the right to audit franchisees to ensure compliance with financial reporting requirements. However, the specific conditions under which an audit fee is charged, such as the threshold for underreporting or underpayment, can vary between franchise systems. Franchisees should carefully review the terms and conditions related to audits and fees in their franchise agreement.