Besides royalties, what other fees are included in the 'Monthly Fees' owed to Amerispec Inspection Services?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee.
- 4.3 Upon the execution of this Agreement by the Company, the Initial Franchise Fee shall be deemed fully earned and non-refundable
5. ROYALTIES
- 5.1 Royalties. The Franchisee shall pay to the Company, without set off, nonrefundable royalties equal to the greater of 7% of the Gross Receipts of the Franchised Business or a minimum payment of $280 per month ("Royalties"). While Royalties are due on business generated from the date the Franchised Business commences operations, payment of the minimum fee shall commence the first full calendar month that begins 90 days after opening the Franchised Business. The Royalties are paid in consideration of the license to use the System of Operation and the Names and Marks.
- 5.2 Due Date; Interest. All monthly payments required by this Paragraph 5 and Paragraph 6 shall be paid to the Company by the day each month specified by the Company in the manuals or otherwise in writing for the preceding calendar month, and shall be submitted to the Company together with any monthly reports required under this Agreement. Any payment or report not actually received by the Company on or before such date shall be deemed overdue. If any payment is overdue, the Franchisee shall pay the Company, in addition to the overdue amount, interest on such amount from the date it was due until paid at the rate of 1.5% per month or the maximum rate permitted by law, whichever is less. If any report is overdue, the Franchisee shall pay to the Company a delinquency fee of $50.00 per delinquent report. Entitlement to such interest and/or the delinquency fee shall be in addition to any other remedies the Company may have. The Franchisee understands that the Company may, at the Company's discretion, assign the payment of such fees and the submission of the monthly reports to a third party.
- 5.3 Required Payment Method. The Franchisee must participate in the Company's then-current electronic funds transfer and reporting program(s). Franchisee must report monthly Gross Receipts and monthly Royalties as well as National Advertising Fund Contributions due via online reporting by the dates specified by the Company from time to time in the manuals or otherwise in writing.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services FDD, franchisees are responsible for paying monthly royalties, which are the greater of 7% of gross receipts or a minimum of $280 per month. These royalties are compensation for the license to use the Amerispec Inspection Services system of operation, names, and marks.
In addition to royalties, franchisees may incur other monthly fees. If a franchisee fails to maintain the quality or service standards established by Amerispec Inspection Services, the company may assign personnel to provide additional training. The franchisee is responsible for covering all of Amerispec Inspection Services' actual costs for the assigned personnel, including wages, travel, and living expenses.
Franchisees must also pay an annual renewal fee of $300 for the AmeriSpec Management System (AMS) software. While this fee is paid annually on June 1st, it effectively functions as a monthly expense when budgeting. Furthermore, Amerispec Inspection Services reserves the right to increase this renewal fee periodically to reflect increased costs of providing services and software access. Upon 60 days written notice, franchisees will be required to use and pay for all future updates, supplements, and modifications to the Computer System.