Under what conditions will Crown Gold Exchange audit a franchisee?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Our actual costs | 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 | |||
| sales b |
Source: Item 6 — OTHER FEES (FDD pages 10–12)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, a franchisee may be audited under specific circumstances. Crown Gold Exchange will only charge a franchisee for audit costs if the audit is conducted because the franchisee failed to submit required reports or is otherwise non-compliant. Additionally, Crown Gold Exchange may charge for audit costs if the audit concludes that the franchisee under-reported gross sales.
It is important to note that these audit costs are separate from other fees that Crown Gold Exchange may charge. For instance, Crown Gold Exchange may charge a late fee of $100 plus interest on the unpaid amount at a rate equal to 18% per year for failing to make a required payment when due. They may also charge $30 for any check or payment that is returned.
Furthermore, Crown Gold Exchange may conduct an inspection of a franchisee's business due to a governmental report, customer complaint or other customer feedback, or the franchisee's default or non-compliance with any system specification. While this inspection is related to compliance, it is distinct from an audit related to financial reporting or sales figures.