Where can I find information regarding the Audit Fee for an Exit franchise?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| Audit Fee7 | See Note8 | See Note8 | See Note8 |
Note 7 If an audit reveals that you have underpaid amounts owing under your Franchise Agreement, and the underpayment is willful or exceeds five percent (5%) of the amount actually owing, in addition to paying the full amount owing, you must reimburse EXIT Realty Upper Midwest for the cost of the audit, including travel, lodging, meals, professional fees, salaries and other expenses of the persons conducting the audit. The expenses relating to the audit are nonrefundable.
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, information regarding the audit fee can be found in Item 6, which discusses other fees. The table outlines the audit fee and refers to Note 8 for additional details. However, the provided excerpts do not contain Note 8.
According to Note 7, if an audit reveals that you have underpaid amounts owing under your Franchise Agreement, and the underpayment is willful or exceeds five percent (5%) of the amount actually owing, in addition to paying the full amount owing, you must reimburse Exit Realty Upper Midwest for the cost of the audit, including travel, lodging, meals, professional fees, salaries and other expenses of the persons conducting the audit. The expenses relating to the audit are nonrefundable.
It is important to note that the audit fee is only applicable if there is an underpayment that is either willful or exceeds 5% of the amount owed. Prospective franchisees should inquire about the typical cost of an audit and the circumstances that might trigger one to better understand the potential financial implications.