What is the general range of the audit fee that Kitchen Solvers franchisees might incur?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount (See Notes) | Due Date | Remarks |
|---|---|---|---|
| Pre-Opening Training | Pre-Opening training for up to 2 people (you and your approved manager) is included in the Initial Franchise Fee. While we currently do not do so, we may charge a fee for any additional people who attend Pre-Opening Training. | When incurred | You must pay all travel and living expenses while attending any training program. You will pay those charges directly to third parties. See Note 6. |
| Audit | Will vary under circumstances (generally $500 to $2,000). | 30 days after inspection or audit | See Note 7. |
| Late Fee | $25 late fee added one day after the due date; plus $10 per day of delinquency. | When due | You must pay us a late fee of $25 for each delinquent report or payment that we receive after its due date. An additional $10 per delinquency per day shall be added for each day the default remains uncured. |
| Insurance – 3 | Estimated at $1,000 - $3,500, | When premiums are due | See Note 8. |
| Months (Single | annual premium which will vary | ||
| Territory) | under the circumstances. | ||
| On-site Training | $350 per day plus expenses | When incurred | See Note 9. |
| Fee | |||
| Convention Registration Fee | Our then-current registration fee | Upon demand | We currently do not charge a registration fee to attend our convention, but we reserve the right to do so in the future. |
| Convention No- Show Fee | $850 | Upon demand | An $850 fee will be assessed if you fail to attend our Kitchen Solvers convention, unless you have obtained our prior approval not to attend. |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, franchisees may incur audit fees ranging from $500 to $2,000. These fees are due 30 days after the inspection or audit. Typically, Kitchen Solvers will cover the costs of audits and inspections.
However, the franchisee becomes responsible for reimbursing Kitchen Solvers for the cost and out-of-pocket expenses of the inspection or audit under specific circumstances. This occurs if the audit is triggered by the franchisee's failure to provide required reports, financial statements, tax returns, or schedules as outlined in the Franchise Agreement. Additionally, if an audit or inspection reveals that the franchisee has understated or underreported Gross Sales, Royalty Fees, Brand Fund Fees, or other amounts owed to Kitchen Solvers by more than 5%, the franchisee will be liable for these audit costs.
This provision incentivizes Kitchen Solvers franchisees to maintain accurate and transparent financial reporting. Franchisees should ensure they comply with all reporting requirements and maintain accurate records to avoid triggering an audit at their expense. Paying close attention to sales figures and royalty calculations is crucial to avoid underreporting, which could lead to significant audit-related costs in addition to the owed amounts.