What is the Co-Op allocation rate that an Amerispec Inspection Services franchisee is eligible for?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer 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 this threshold of CLR) = $350. However, any owner that contributed to 2024 NAF is eligible for a minimum of $400. We currently permit participants in Co-Ops to submit receipts of such shared expenses to us, and we may, in turn, use the Ad Fund to reimburse such participants for a portion of such shared expenditures. We shall determine the percentage of such Co-Op expenditures that may be reimbursed from the Ad Fund, if any. The Co-Op will not have prepared annual financial statements. We have the sole right to form, ch
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, franchisees may participate in a voluntary cooperative advertising program (Co-Op) to boost local advertising efforts. This program supplements the national-level marketing initiatives funded by the Ad Fund. The Co-Op is funded by the Ad Fund and administered by Amerispec Inspection Services. To qualify, franchisees must meet performance standards like being current on fees, maintaining accounts receivable, having live answering during business hours, complying with obligations, and submitting receipts.
In 2024, the Co-Op allocation rate was between 1% and 1.5% of a franchisee's 2024 customer level revenue (CLR), or a minimum of $400. For example, a franchisee with $35,000 in CLR would be eligible for a $350 Co-Op allotment ($35,000 x 0.01). However, any owner that contributed to the 2024 NAF is eligible for a minimum of $400. Franchisees can submit receipts for shared expenses, and Amerispec Inspection Services may reimburse a portion of these expenditures from the Ad Fund.
It's important to note that Amerispec Inspection Services retains the right to modify or dissolve the Co-Op program. While participation in the Co-Op is voluntary, understanding the eligibility requirements and allocation rates is crucial for franchisees looking to maximize their local advertising and marketing efforts. Prospective franchisees should inquire about the current CLR thresholds to determine the exact Co-Op allocation rate they can expect.