When is the Audit Fee due for a Cr3 American Exteriors franchise?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE (Note 2) | REMARKS |
|---|---|---|---|
| (Note 1) | |||
| Audit Fee | Cost of audit plus 18% interest per annum on underpayment and $50 per month late payment. | As invoiced | Payable if an audit discloses an under reporting of Gross Revenues or underpayment to us by 2% or more. |
Source: Item 6 — OTHER FEES (FDD pages 18–20)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, the Audit Fee is due as invoiced. This means that Cr3 American Exteriors will send an invoice to the franchisee, and the franchisee is expected to pay the Audit Fee by the due date specified on that invoice.
The Audit Fee is imposed if an audit reveals that the franchisee has underreported Gross Revenues or has underpaid Cr3 American Exteriors by 2% or more. In addition to the cost of the audit itself, the franchisee will also be responsible for paying interest at a rate of 18% per annum on the underpayment, as well as a late fee of $50 per month.
Franchisees should maintain accurate and transparent financial records to avoid triggering an audit and incurring these additional fees. It is common practice in franchising for franchisors to reserve the right to audit franchisee records to ensure compliance with financial reporting requirements and to protect the integrity of the franchise system.