What triggers the audit expense for a Hydrodog franchisee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee(1) | Amount(4) | Due Date | Remarks |
|---|---|---|---|
| Audit Expenses | Cost of inspection or audit, plus travel. | On demand | Payable only if you fail to furnish reports, supporting records or other required information or you under report Gross Sales by 2% or greater. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, an audit expense may be incurred by a franchisee under specific circumstances. The franchisee will be responsible for covering the cost of the inspection or audit, in addition to travel expenses, if they fail to provide necessary reports, supporting records, or other required information.
Another trigger for audit expenses is underreporting of Gross Sales. If a Hydrodog franchisee underreports their Gross Sales by 2% or more, they will be required to pay for the cost of the audit, including travel expenses.
The audit expenses are due on demand. This means that Hydrodog can request immediate payment for these expenses if either of the aforementioned situations occur. It is crucial for prospective franchisees to maintain accurate records and transparent reporting practices to avoid these additional costs.