How should Amerispec Inspection Services franchisees maintain their books and records?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
urchase any item, unless the failure is the result of factors within the Company's reasonable control.
12. FINANCIAL INFORMATION, DEPOSITS, REPORTS, AND AUDITS
- 12.1 Maintenance of Books, Records and Accounts. The Franchisee shall maintain its books and records in the manner reasonably required by the Company. The Company has established a contact management and reporting system which shall be used by all franchisees. The Franchisee shall utilize the system in a manner approved by the Company and pay for the purchase and installation of hardware and software, which may be necessary for use with such system.
- 12.2 Maintenance of Bank Account. The Franchisee shall maintain a separate bank account for the Franchised Business and shall deposit in that account all revenues received by the Franchised Business in a timely manner (not less than once each week). At all times, the Franchisee shall maintain a minimum balance of $500 in that account. The Franchisee shall notify the Company of the bank in which the account is maintained, as well as the account number, and shall notify the Company at least 10 days prior to making any material change to the account, including the name of any signatory on the account or the location of the account.
- 12.3 Financial Statements. The Franchisee shall provide the Company with such weekly, monthly, quarterly, and annual financial and sales information relating to the Franchised Business from time to time as may be reasonably required by the Company. All financial and sales information to be delivered to the Company shall be in the form and by the means of communication required by the Company. All monthly financial and sales information shall be prepared in accordance with generally accepted accounting principles, in the form prescribed by the Company, and shall be received by the Company no later than the 20th day of the following month. At least annually, at such time designated by the Company, but not later than 90 days after the fiscal year end of the Franchisee, the Franchisee shall deliver to the Company annual financial statements, including statements of operation of the Franchised Business prepared in accordance with generally accepted accounting principles.
- 12.4 Audit Rights. The Company shall have the right to audit or inspect or cause to be audited or inspected the sales reports and financial statements delivered to the Company, including but not limited to, the books, records and sales and income tax
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, franchisees must maintain their books and records in a manner reasonably required by the company. Amerispec Inspection Services has established a contact management and reporting system that all franchisees are required to use. Franchisees are responsible for the costs associated with purchasing and installing any necessary hardware and software for this system.
Amerispec Inspection Services franchisees must also maintain a separate bank account specifically for the franchised business. All revenues received by the business must be deposited into this account at least once per week, and a minimum balance of $500 must be maintained. Franchisees are required to inform Amerispec Inspection Services of the bank's details, including the account number, and provide 10 days' notice before making any significant changes to the account, such as altering signatories or the account's location.
Furthermore, franchisees must provide Amerispec Inspection Services with weekly, monthly, quarterly, and annual financial and sales information as reasonably required. Monthly financial information must adhere to generally accepted accounting principles, follow the format prescribed by Amerispec Inspection Services, and be submitted by the 20th day of the following month. Annually, franchisees must deliver financial statements, including statements of operation, prepared in accordance with generally accepted accounting principles, no later than 90 days after the franchisee’s fiscal year end.
Amerispec Inspection Services retains the right to audit or inspect the sales reports and financial statements provided by the franchisee, including books, records, and sales and income tax returns. This audit can extend to the owners, members, or partners of the franchisee if the franchisee is a corporation, limited liability company, or partnership. These requirements ensure that Amerispec Inspection Services can monitor the financial health and compliance of its franchisees, while also providing a standardized approach to financial reporting across the franchise system.