Under what financial threshold will Dryer Vent Squad conduct an audit at the franchisee's expense?
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 Franchise Disclosure Document, a financial audit will be conducted at the franchisee's expense if the audit determines underreporting of 2% or greater during any designated period. The franchisee is responsible for covering the cost of the audit, in addition to all expenses incurred by Dryer Vent Squad during the process.
This means that if Dryer Vent Squad suspects that a franchisee is underreporting their gross sales by 2% or more, they have the right to conduct a financial audit. If the audit confirms the underreporting, the franchisee will be responsible for paying the cost of the audit itself, as well as any expenses Dryer Vent Squad incurred while conducting the audit.
Franchisees should maintain accurate and transparent financial records to avoid triggering such an audit. Underreporting sales is a serious violation of the franchise agreement and can lead to further penalties or even termination of the franchise agreement. This policy incentivizes franchisees to accurately report their sales figures and maintain financial integrity within the Dryer Vent Squad system.