When is the Dryer Vent Squad audit fee due?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit | Cost of audit plus expensed incurred | On demand | For costs incurred by us for each financial audit, provided the audit determines underreporting of 2% or greater during any designated period. Includes expenses incurred by us |
Source: Item 6 — OTHER FEES (FDD pages 16–21)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, the audit fee is due 'on demand.' This means that Dryer Vent Squad franchisees will be required to pay the cost of the audit, plus any expenses incurred by Dryer Vent Squad, when Dryer Vent Squad requests payment.
The FDD specifies that this audit will be conducted if Dryer Vent Squad determines there has been an underreporting of 2% or greater during any designated period. The audit costs cover expenses related to the audit itself, as well as legal, travel, and reasonable accommodation costs incurred by Dryer Vent Squad.
It is important for prospective franchisees to understand the conditions under which an audit may be triggered and to maintain accurate financial records to avoid potential audit fees. Franchisees should clarify with Dryer Vent Squad what specific documentation is required and how financial reporting should be conducted to minimize the risk of discrepancies that could lead to an audit.