When are Corcoran audit fees due?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
| $5,000,001 | $10,000,000 | 0.75% | | $10,000,001 | * | 0.50% | | Name of Fee | Amount | Due Date | Remarks | |------------------------------|-------------|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Audit Fees | See remarks | upon receipt of the audit report | You must immediately pay us any fees that the audit reveals were due during the audit period but not paid, plus interest at Prime plus 2%. If you fail to cooperate on a timely basis with an audit, fail to keep auditable records, cancel or reschedule the audit, or if the audit exposes a deficiency of 5% or more in amounts due for any consecutive 3-month period, you also must pay all of our audit costs, plus fees past due, interest, late charges and costs. As of the issuance date of this disclosure document, the estimated cost for an audit is a minimum of $450 per day; however, we and our Related Parties have the right to increase the minimum per diem rate by up to 10% per year. For existing franchisees, the criteria that may require payment of audit f
Source: Item 6 — OTHER FEES [1] [2] (FDD pages 27–34)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, audit fees are due upon receipt of the audit report. The amount of these fees is not fixed and is determined by the specifics of the audit.
Corcoran franchisees must immediately pay any fees that the audit reveals were due during the audit period but not previously paid. Additionally, interest accrues on these unpaid amounts at a rate of Prime plus 2%. This incentivizes franchisees to maintain accurate records and make timely payments to avoid additional charges.
Furthermore, Corcoran outlines specific circumstances that could lead to a franchisee being responsible for covering the franchisor's audit costs. These include failing to cooperate with the audit in a timely manner, not maintaining auditable records, canceling or rescheduling the audit, or if the audit uncovers a deficiency of 5% or more in amounts due for any consecutive 3-month period. As of the issuance date of the 2025 disclosure document, the estimated cost for an audit is a minimum of $450 per day, and Corcoran reserves the right to increase this minimum per diem rate by up to 10% per year. Existing franchisees' obligations regarding audit fee payments may vary based on the terms of their individual Franchise Agreements.