When is the cost of audit for Expense Reduction Analysts due?
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. |
| 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, there are two distinct audit fees a franchisee might encounter. The first, labeled 'Our Cost of Audit,' is due upon invoice. However, this fee is only payable if an audit reveals that the franchisee understated their Net Cumulative Receipts by 2% or more, or if the audit was necessary due to the franchisee's failure to submit required financial reports. The amount is Expense Reduction Analysts' out-of-pocket expense for conducting the audit.
The second audit fee, simply named 'Audit Fees,' is due within 30 days of the invoice date. This fee is the actual cost of the audit and becomes payable if an audit reveals that the franchisee underreported the Gross Revenue of their Consulting Business by 2% or more.
In both cases, the audit fees are contingent on the findings of an audit and are triggered by specific instances of underreporting revenue or failing to provide necessary financial reports. It is important for prospective franchisees to understand the conditions under which these fees are applied and to maintain accurate financial records to avoid such situations. Franchisees should clarify with Expense Reduction Analysts which audit fee schedule applies to them.