What costs are included in the audit expenses that a Face Foundrie franchisee may be required to reimburse?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 8: You must pay our audit expenses only if an audit of your records reveals an understatement of 2% or more of your total amount owed to us during the audit period. In addition to any unpaid amounts you may owe us, you must reimburse us for the actual costs we incur in conducting the audit, including travel, lodging, meals, and compensation of the auditing personnel that may travel to your Facial Bar. The cost of the audit will depend on many factors that will vary on a case-by-case basis, like the condition and accuracy of your recordkeeping, the extent of your cooperation, the number of years of your accounting records that are reviewed during the audit process, and other circumstances unique to your particular audit. As a result, we are unable to estimate a range of these audit cost; however, these audit expenses will not exceed our actual costs.
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees may have to cover audit expenses if an audit reveals they understated what they owed to Face Foundrie by 2% or more. These expenses include the actual costs Face Foundrie incurs for the audit.
The costs that Face Foundrie may pass on to the franchisee include travel, lodging, meals, and compensation for the auditing personnel who travel to the franchisee's Facial Bar location. The exact cost of the audit is not fixed and can vary significantly.
The FDD states that the cost depends on factors such as the condition and accuracy of the franchisee's recordkeeping, the level of cooperation provided during the audit, the number of years of accounting records reviewed, and other specific circumstances related to the audit. While Face Foundrie cannot provide an estimated range for these audit costs, the FDD assures that the expenses will not exceed Face Foundrie's actual costs.