factual

On what basis were Amerispec Inspection Services franchisee's Co-Op funds determined in 2024?

Amerispec_Inspection_Services Franchise · 2025 FDD

Answer from 2025 FDD Document

ss hours; being in compliance with its obligations as a franchisee; and timely submitting receipts to the Co-Op.

In 2024, each franchisee's Co-Op funds were based on their 2024 customer level revenue (CLR). A franchisee is eligible for a 1-1.5% Co-Op allocation rate depending on its CLR threshold or a minimum of $400. For calculating the 2024 allocations, the franchisee's total Gross Receipts reported from 2024 is multiplied by the applicable NAF Co-Op rate in which it falls. For example, a business that generated $35,000 in CLR in 2024 would be eligible for a Co-Op allotment of $35,000 x .01 (the allocation rate for

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 24–31)

What This Means (2025 FDD)

According to the 2025 Amerispec Inspection Services FDD, the Co-Op funds available to franchisees in 2024 were determined by their 2024 customer level revenue (CLR). Franchisees were eligible for a Co-Op allocation rate between 1% and 1.5%, depending on their CLR threshold, with a minimum allocation of $400.

To calculate the 2024 Co-Op allocations, Amerispec Inspection Services multiplied the franchisee's total Gross Receipts reported from 2024 by the applicable NAF Co-Op rate for their CLR threshold. For example, a franchisee with $35,000 in CLR would receive a Co-Op allotment of $350 (calculated as $35,000 x 0.01). However, any franchisee that contributed to the 2024 NAF was eligible for a minimum Co-Op allotment of $400, regardless of their CLR.

This means that a franchisee's ability to access Co-Op funds to support local advertising and marketing efforts was directly tied to their revenue performance. While higher revenue generally translated to a larger Co-Op allocation, the $400 minimum ensured that all franchisees contributing to the NAF received some level of support. Franchisees should aim to increase their CLR to maximize their Co-Op fund potential, which can then be used for local advertising and marketing programs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.