When is the audit fee due to Marble Slab Creamery?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
transfer | transfer of franchise. |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit (1) | Cost of audit plus interest on unpaid amount of 1.5% interest per month and $25 per week (2) | 30 days after billing | Cost of audit payable only if audit shows an understate |
Source: Item 6 — OTHER FEES (FDD pages 23–32)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, an audit fee is due 30 days after billing. The audit fee covers the cost of the audit, plus interest on any unpaid amounts. Marble Slab Creamery charges interest of 1.5% per month on unpaid audit fees, along with a $25 per week charge.
Marble Slab Creamery will only charge a franchisee for the cost of an audit if the audit reveals an understatement in any payment of at least 2%. This means that if the audit finds only minor discrepancies or no discrepancies at all, the franchisee will not be responsible for covering the cost of the audit.
This policy is fairly standard in franchising, as franchisors need to ensure accurate reporting and payment of royalties and other fees. The 30-day payment window is also typical, giving franchisees a reasonable amount of time to address the bill. The interest and weekly charge for late payments are designed to incentivize timely payment and compensate Marble Slab Creamery for the administrative burden of collecting overdue amounts.