In the consolidated statements of comprehensive loss, where are the advertising costs for Amerispec Inspection Services included?

According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, advertising costs are included within general and administrative expenses in the consolidated statements of comprehensive loss. For the year ending December 31, 2024, advertising expenses totaled approximately $525,000, while for the period ending December 31, 2023, they were approximately $615,000. These figures represent the costs expensed as they were incurred by Amerispec Inspection Services.

This means that when Amerispec Inspection Services reports its financial performance, the money spent on advertising is categorized under the broader umbrella of general and administrative expenses. These expenses cover the costs of running the company's core operations and supporting its growth.

For a prospective franchisee, understanding where advertising costs are accounted for provides insight into the company's overall financial reporting and expense management. It's important to note that while franchisees contribute to advertising through fees, the franchisor has discretion over how these funds are spent to promote the Amerispec Inspection Services brand.