Under what conditions is a Precision Door Service franchisee required to pay for an audit?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| 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 the cost of the audit. |
Source: Item 6 — OTHER FEES (FDD pages 28–36)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, a franchisee may be required to pay for an audit under specific circumstances. These circumstances include if Precision Door Service finds an understatement of Gross Sales of 2% or more, or if the franchisee fails to provide requested information within 30 days of the franchisor's request.
If either of these conditions is met, the franchisee is responsible for covering the cost of the audit, all associated expenses, any amount owed as determined by the audit, plus interest and late fees. Additionally, Precision Door Service may impose an Audit Noncompliance Fee of $500 per document (up to $2,500 per audit) if the franchisee fails to provide requested documents in a timely manner.
Furthermore, if Precision Door Service has to reschedule an audit due to the franchisee's lack of cooperation, the franchisee will be required to pay for the cost of the rescheduled audit. This policy incentivizes franchisees to maintain accurate records and cooperate fully with audit requests to avoid incurring additional expenses.