What is the due date 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 due upon invoice. This fee covers Expense Reduction Analysts' out-of-pocket expenses for conducting an audit of a franchisee's financial records.
However, the franchisee is only responsible for paying this fee if the audit reveals that their Net Cumulative Receipts were understated by 2% or more. The franchisee is also responsible for the fee if the audit was necessary because they failed to submit the required financial reports to Expense Reduction Analysts.
This policy incentivizes franchisees to maintain accurate financial records and submit them on time. It also protects Expense Reduction Analysts from losses due to underreporting of revenue. Franchisees should ensure they understand the requirements for financial reporting and maintain accurate records to avoid incurring this audit fee.