What is the condition that triggers the Dryer Vent Squad audit fee?
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 the 2024 Dryer Vent Squad FDD, a franchisee will be charged for the cost of an audit plus expenses incurred if the audit determines underreporting of 2% or greater during any designated period. This audit fee covers the costs incurred by Dryer Vent Squad for each financial audit, including any related expenses.
This means that if Dryer Vent Squad conducts a financial audit of a franchisee's business and discovers that the franchisee has underreported their gross sales by 2% or more during any period, the franchisee will be responsible for covering the cost of the audit. The audit fee is in addition to any other penalties or remedies that Dryer Vent Squad may pursue as a result of the underreporting.
Franchisees should ensure accurate and transparent financial reporting to avoid triggering an audit and incurring these costs. It is important to maintain detailed records of all sales and expenses and to comply with Dryer Vent Squad's reporting requirements. This policy is fairly standard in franchising, as franchisors need to ensure accurate royalty payments and protect the integrity of the brand.