What is the amount or formula for the Our Cost of Audit fee for Expense Reduction Analysts?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
| NAME OF FEE1 | AMOUNT OR FORMULA | DUE DATE | REMARKS |
|---|---|---|---|
| Our Cost of Audit | Our out-of-pocket expense | Upon invoice | You pay our cost of audit only if the audit showed that your Net Cumulative Receipts were understated by 2% or more, or if the audit was necessary because you did not submit required financial reports to us. |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the Our Cost of Audit fee is equal to Expense Reduction Analysts' out-of-pocket expenses. This fee is due upon invoice.
An Expense Reduction Analysts franchisee will only have to pay this fee if an audit reveals that their Net Cumulative Receipts were understated by 2% or more, or if the audit was necessary because the franchisee did not submit required financial reports to Expense Reduction Analysts.
This means that if a franchisee accurately reports their Net Cumulative Receipts and submits all required financial reports on time, they will not incur this audit fee. It is in the franchisee's best interest to maintain accurate financial records and comply with all reporting requirements to avoid triggering an audit and the associated costs.