What is the Audit Fee for a Spray Net franchisee?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Audit Costs. Following an audit, if we find you have underreported Gross Sales, you will pay the Royalty Fee and all other past amounts due under the Franchise Agreement due to your underreporting, as well as interest and all our costs associated with conducting the audit. Audit costs vary depending upon where you are located, the condition of your financial records, what we audit and when. Previous audit costs alone range between $1,000 and $3,000 and could be more. There are no audit costs to you if your records, r
Source: Item 6 — > **ITEM 6 OTHER FEES (FDD pages 15–29)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees may incur audit costs if they underreport gross sales. If an audit reveals underreported gross sales, the franchisee is responsible for paying the Royalty Fee and any other past due amounts under the Franchise Agreement, along with interest and the costs associated with the audit.
The audit costs for Spray Net can vary significantly depending on factors such as the franchisee's location, the condition of their financial records, and the scope of the audit. The FDD states that previous audit costs have ranged from $1,000 to $3,000, but could potentially be higher.
However, a Spray Net franchisee will not incur any audit costs if their records, reports, and payments are in order and current. This provides an incentive for franchisees to maintain accurate and up-to-date financial records to avoid potential audit fees.