How is the Amerispec Inspection Services Co-Op program funded?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
we retain the right, in our sole discretion, to require participation in other advertising funds in the future.
Cooperatives. Franchisee may participate in a voluntary cooperative advertising program (the "Co-Op") that is intended to encourage AmeriSpec franchisees to increase local advertising and marketing programs by supplementing some of the expenses associated with these marketing efforts. While the Ad Fund mostly focuses on expenses for marketing initiatives on a national level, Co-Op funds provide the additional support needed to increase local marketing efforts. The Co-Op program is fully funded by the Ad Fund and administered by us. The Co-Op is available for all AmeriSpec franchisees that contributed to the Ad Fund and are in compliance with the rules and guidelines. To qualify for the Co-Op, franchisee must meet and maintain certain performance standards and requirements, such as the following: being current on reporting and paying all fees due to us; maintaining current all applicable accounts receivable with us or our affiliates; having live answering available Monday through Friday during business 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 the 2025 Amerispec Inspection Services FDD, the Co-Op program is fully funded by the Ad Fund and is administered by Amerispec Inspection Services. The purpose of the Co-Op is to encourage franchisees to increase local advertising and marketing efforts by helping with some of the expenses. While the Ad Fund focuses on national marketing initiatives, the Co-Op provides additional support for local marketing efforts.
To be eligible for the Co-Op program, franchisees must contribute to the Ad Fund and comply with the program's rules and guidelines. Franchisees must also meet certain performance standards and requirements, such as being current on reporting and paying all fees due to Amerispec Inspection Services, maintaining current accounts receivable with Amerispec Inspection Services or its affiliates, having live answering available during business hours Monday through Friday, complying with their obligations as a franchisee, and submitting receipts to the Co-Op in a timely manner.
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. Amerispec Inspection Services permits participants in Co-Ops to submit receipts of shared expenses, and they may use the Ad Fund to reimburse participants for a portion of those expenditures. Amerispec Inspection Services determines the percentage of Co-Op expenditures that may be reimbursed from the Ad Fund, if any. The Co-Op will not have prepared annual financial statements. Amerispec Inspection Services has the sole right to form, change, dissolve, and merge Co-Ops and to create and amend any organizational and governing documents of any Co-Op.
In 2024, 13% of the Ad Fund was contributed to the Co-Op. As a prospective franchisee, it is important to understand the specific requirements and performance standards to qualify for the Co-Op program, as well as how the funds are allocated and reimbursed. Franchisees should also be aware that Amerispec Inspection Services has the discretion to change the terms and conditions of the Co-Op program.