What is the definition of "Gross Receipts" for Amerispec Inspection Services franchisees?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Gross Receipts" means the total amount of revenues received by you or any affiliates from all products and services offered by the Franchised Business or offered from the premises of the Franchised Business, and all other services or products sold under the Marks, or using any branded systems (including any branded software) or tools, or otherwise related to the Franchised Business or sold to customers of the Franchised Business, whether payment is received by cash or credit, plus the fair market value of goods delivered and services rendered to you, or your designee, in consideration for goods and services provided in, from, or in conjunction with the Franchised Business. "Gross Receipts" exclude (i) bona fide refunds, (ii) credits given or allowed by you to customers, (iii) uncollectible checks, and (iv) amounts collected from customers and remitted by you to any governmental taxing authority in satisfaction of sales taxes.
Source: Item 6 — Other Fees (FDD pages 14–18)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, Gross Receipts are defined as the total revenue from all products and services offered by the franchised business, or from the premises of the franchised business. This includes all services or products sold under the Amerispec Inspection Services marks, using branded systems or tools, or otherwise related to the franchised business or sold to its customers. Gross Receipts are a key figure, as several fees, including royalties and advertising contributions, are calculated as a percentage of this amount.
However, the 2025 FDD also specifies some exclusions from the calculation of Gross Receipts. These exclusions include bona fide refunds, credits given to customers, uncollectible checks, and amounts collected from customers and remitted to governmental taxing authorities for sales taxes. This means that Amerispec Inspection Services franchisees do not have to pay royalties or advertising fees on these specific types of revenue.
It is important for prospective Amerispec Inspection Services franchisees to understand exactly how Gross Receipts are defined, as this figure directly impacts the amount of royalties and advertising contributions they will owe to the franchisor. Franchisees should carefully review the exclusions to ensure they are accurately calculating their Gross Receipts and paying the correct fees. Additionally, the FDD states that Amerispec Inspection Services requires participation in electronic funds transfer and reporting programs, with specific due dates for reporting and payment of monthly fees.