When are Expense Reduction Analysts audit fees due?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
| NAME OF FEE1 | AMOUNT OR FORMULA | DUE DATE | REMARKS |
|---|---|---|---|
| fees for each additional IT user account: Microsoft Power B1 $10 E1 (online) $13 E3 (desktop) $28 Dynamics 365 $10 MS teams Audio conferencing software $3 MS teams Premium $8.40 | setup costs and monthly user fees (collectively, the "Technology Fees"). The additional charges may be changed from time to time as set up in the Global Manuals - Information Technology Manual, and you will receive formal notice of any such changes. | ||
| Taxes on Payments to Us | Amount of tax or assessment | When imposed by taxing authority | If any taxing authority, wherever located, imposes any future tax, levy or assessment on any payment you make to us, in addition to all payments due to us, you must pay the tax, levy or assessment. |
| Insurance | Will vary according to circumstances | Upon demand | If you fail to obtain required insurance, we may obtain such insurance at your expense (but are not required to do so) and charge you a service fee to do so. Otherwise, these payments are made directly to your third-party insurance provider. You must name us and any Approved Supplier we designate |
| Indemnification | Amount of claim or judgment | When incurred | as an additional insured. You must reimburse us for our attorneys' fees and other costs that we incur in connection with any third-party claims brought against us that arise out of, or are related to, the operation of your Consulting Business. |
| Audit Fees | Actual cost of audit | Within 30 days of invoice | Payable if audit reveals that you have underreported the Gross Revenue of your Consulting Business by 2% or more. |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, audit fees are due within 30 days of the invoice date. However, these fees are only payable if an audit reveals that the franchisee has underreported the Gross Revenue of their Consulting Business by 2% or more. This conditionality means that franchisees who accurately report their revenue will not be subject to these audit fees.
This policy serves as an incentive for Expense Reduction Analysts franchisees to maintain accurate financial records. The audit fees are intended to cover the cost incurred by Expense Reduction Analysts for conducting the audit, ensuring that the franchisor is compensated for the expense of verifying a franchisee's financial reporting.
For a prospective Expense Reduction Analysts franchisee, it is crucial to understand the circumstances under which audit fees may be imposed. Maintaining accurate and transparent financial records is essential to avoid any potential disputes or additional costs associated with underreporting revenue. Franchisees should also clarify with Expense Reduction Analysts the specific procedures and criteria used during audits to ensure compliance and avoid any misunderstandings.