When does the $160 minimum Advertising Contribution apply to an Amerispec Inspection Services franchisee?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
cs, traffic patterns, competition, and similar factors.
Advertising Programs
National Advertising Fund. All franchisees must contribute the Advertising Contribution to the National Advertising Fund (the "Ad Fund"). As of the date of this Disclosure Document, the Advertising Contribution is the greater of 3% of the monthly Gross Receipts of each Franchised Business or $160 (except the $160 minimum does not apply until 90 days after opening the Franchised Business). We may adjust this contribution amount upon written notice to you, but it shall not exceed 3% of Gross Receipts. We do not contribute to the Ad Fund. Although there are no company-owned stores, all company-owned stores would contribute to the Ad Fund on the same basis as other franchisees. Any amounts in the Ad Fund that are not spent in any fiscal year are kept in the Ad Fund for
use in the following year. Upon written request, we will provide a written statement of the financial
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 24–31)
What This Means (2025 FDD)
According to Amerispec Inspection Services' 2025 Franchise Disclosure Document, all franchisees must contribute to the National Advertising Fund (Ad Fund). The advertising contribution is the greater of 3% of the monthly Gross Receipts of each franchised business or $160.
However, the $160 minimum contribution does not apply until 90 days after opening the franchised business. This means that for the first three months of operation, an Amerispec Inspection Services franchisee only pays 3% of their gross monthly receipts, if that amount is less than $160.
Amerispec Inspection Services retains the right to adjust the contribution amount with written notice, but it will not exceed 3% of gross receipts. The FDD also states that any unspent funds in the Ad Fund at the end of the fiscal year are retained for use in the following year.