Are the fees outlined in Item 6 of the Amerispec Inspection Services FDD generally refundable?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise stated, all fees are uniformly imposed by, payable to or collected by, us, and are nonrefundable; however, we reserve the right to waive or amend any of the fees for circumstances we believe warrant a waiver or amendment, including but not limited to an underlying increase in costs we incur either directly or through the use of approved vendors. You must participate in our current electronic funds transfer and reporting program(s). For monthly fees, such as the Royalties and Advertising Contribution (the "Monthly Fees"), the fee must be reported by the 10th day of the month and paid electronically by the date specified by us following the month in which Gross Receipts are made (currently, the 20th day of the month) (the "Payment Due Date"). If you have not reported Gross Receipts for any reporting period, we will be authorized to debit your bank account (the "Account") in an amount equal to the greater of the non-reported payment (if we can reasonably estimate or determine the owed amount) or one hundred twenty percent (120%) of the Monthly Fees transferred from such Account for the last reporting period for which a report of Gross Receipts was provided to us. If at any time we determine that you have underreported Gross Receipts or underpaid any fees due to us under the Franchise Agreement, we will be authorized to immediately initiate a debit to the Account in the appropriate amount, including interest as provided for in this Agreement. An overpayment will be credited to the Account through a credit effective as of the first reporting date after we and you determine that such credit is due.
Source: Item 6 — Other Fees (FDD pages 14–18)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services Franchise Disclosure Document (FDD), the fees outlined in Item 6 are generally nonrefundable. However, Amerispec Inspection Services retains the right to waive or amend any of the fees if circumstances warrant it, including increases in costs incurred directly or through approved vendors. Franchisees are required to participate in Amerispec Inspection Services's electronic funds transfer and reporting programs.
For monthly fees like Royalties and the Advertising Contribution, franchisees must report the fee by the 10th day of the month and pay electronically by the date specified by Amerispec Inspection Services following the month in which Gross Receipts are made (currently, the 20th day of the month). If a franchisee fails to report Gross Receipts for any reporting period, Amerispec Inspection Services is authorized to debit the franchisee's bank account for the greater of the non-reported payment (if reasonably estimated) or 120% of the Monthly Fees transferred from such Account for the last reporting period for which a report of Gross Receipts was provided.
If Amerispec Inspection Services determines that a franchisee has underreported Gross Receipts or underpaid any fees, they are authorized to immediately debit the franchisee's account for the appropriate amount, including interest. Overpayments will be credited to the franchisee's account as of the first reporting date after Amerispec Inspection Services and the franchisee determine that such credit is due. This policy of nonrefundable fees, combined with the potential for account debits and interest charges, underscores the importance of accurate and timely financial reporting for Amerispec Inspection Services franchisees.