What consideration is given in exchange for the royalty payments 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 f
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the royalty payments are made in exchange for the license to use the System of Operation and the Names and Marks. Franchisees are required to pay royalties equal to the greater of 7% of the Gross Receipts of the Franchised Business or a minimum payment of $280 per month.
This means that as an Amerispec Inspection Services franchisee, you are paying for the right to operate under the Amerispec Inspection Services brand, utilizing their established methods and marketing strategies. The royalty ensures you can leverage the brand's reputation and operational system. The minimum royalty payment ensures that Amerispec Inspection Services receives a baseline income, regardless of your gross receipts, while the percentage-based royalty allows them to share in your success as your business grows.
It's important to note that these royalties are nonrefundable and must be paid without any deductions or offsets. While royalties are due from the start of operations, the minimum payment begins the first full calendar month that starts 90 days after opening the Franchised Business. This provides a short grace period for new franchisees to establish their business before the minimum royalty payment kicks in. Franchisees should factor these ongoing royalty payments into their financial projections to ensure they can meet these obligations.