When is the audit fee due for a Creative World School franchise?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit | Cost of inspection or audit plus travel | 10 days after billing | Payable only if you fail to furnish reports, supporting records or other required information. |
Source: Item 6 — OTHER FEES (FDD pages 15–18)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, an audit fee is due 10 days after billing. This fee covers the cost of the inspection or audit, including travel expenses.
However, this fee is not a standard, recurring charge. It is only payable if a franchisee fails to furnish required reports, supporting records, or other necessary information to Creative World School. This implies that as long as the franchisee remains compliant with reporting requirements, they will not incur this audit fee.
In the franchise industry, audit fees are not uncommon, especially when there are concerns about the accuracy or completeness of a franchisee's financial reporting. The specific conditions under which the fee is charged, as well as the payment terms, can vary from franchise to franchise. Therefore, it is important for a prospective Creative World School franchisee to understand the reporting requirements and ensure timely and accurate submission of all required documents to avoid triggering an audit and the associated fee.