When is the Audit Fee due for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit Fee13 | Cost of audit plus interest and late payment charge on underpayment | On demand | Payable to Gold Star Non-refundable |
Note 13: Payable only if audit discloses an understatement of at least 2% of Gross Sales for any reporting period.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Audit Fee is due 'on demand.' This means that Gold Star can request payment of the audit fee at any time.
The Audit Fee covers the cost of the audit itself, plus any interest and late payment charges that may be applied if an underpayment is discovered. According to Note 13, this fee is only payable if the audit reveals an understatement of at least 2% of Gross Sales for any reporting period.
As a prospective franchisee, it is important to understand the circumstances that could trigger an audit and the associated fees. Maintaining accurate financial records and adhering to Gold Star's reporting requirements can help avoid situations where an audit might be necessary. Franchisees should clarify with Gold Star what specific events or discrepancies might prompt an audit to better prepare for potential costs.