What is the Audit Noncompliance Fee for Precision Door Service?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| and for each Franchise Agreement transferred at the same time. | |||
| Training Fee as part of Buyer Commitment Agreement1 | $14,900 | Prior to attending training. | This fee is payable only in the event of a transfer where you and your transferee buyer request that the transferee buyer attend training prior to the closing on the sale of your Business and is in addition to all other transfer requirements. |
| Late Fees1 | $10 per day | On demand | Applies to fees that are overdue. |
| (Franchise | |||
| Agreement) | |||
| Dishonored Check or ACH Draft1 | $50 | On demand | You must pay us for each check returned or ACH draft refused by your financial institution for insufficient funds in your account. |
| Interest1 | 12% on unpaid balances | On demand | Payable on all overdue amounts. The twelve percent (12%) charge is calculated as a per annum rate but may be collected on demand, including weekly or monthly through automatic bank draft. |
| Audit1 | Cost of audit plus expenses, plus any amount owed as shown by the audit, plus interest and late fees | When you are billed | Payable only if we find an understatement of Gross Sales of 2% or more or if you fail to provide requested information within 30 days of our request |
| Audit Noncompliance Fee | $500 per document (up to $2,500 per audit) that you fail to timely make available to us in connection with an audit; And/or: cost of audit, if audit is rescheduled due to your failure to cooperate with the audit | On demand | Payable if you fail to timely make available to us requested documents in connection with an audit. In addition, if we must reschedule an audit due to your lack of cooperation, you will be required to pay for th |
Source: Item 6 — OTHER FEES (FDD pages 28–36)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the Audit Noncompliance Fee is $500 per document, with a maximum of $2,500 per audit, for failing to provide requested documents in a timely manner for an audit. Additionally, Precision Door Service may charge the franchisee the cost of the audit if it must be rescheduled due to the franchisee's lack of cooperation.
This fee is imposed if a franchisee does not provide the necessary documents for an audit when requested. The fee can range from $500 per document up to $2,500 for each audit. This means that if a franchisee is missing multiple documents, they could incur a significant penalty.
Furthermore, if the franchisee's lack of cooperation leads to the rescheduling of the audit, Precision Door Service will require the franchisee to cover the full cost of the audit. This could include auditor fees, travel expenses, and other related costs. Franchisees should ensure they maintain accurate records and promptly respond to any requests for information from Precision Door Service to avoid these fees.