Where in the Amerispec Inspection Services manual can I find information about royalty fees?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee.
- 4.3 Upon the execution of this Agreement by the Company, the Initial Franchise Fee shall be deemed fully earned and non-refundable
5. ROYALTIES
- 5.1 Royalties. The Franchisee shall pay to the Company, without set off, nonrefundable royalties equal to the greater of 7% of the Gross Receipts of the Franchised Business or a minimum payment of $280 per month ("Royalties"). While Royalties are due on business generated from the date the Franchised Business commences operations, payment of the minimum fee shall commence the first full calendar month that begins 90 days after opening the Franchised Business. The Royalties are paid in consideration of the license to use the System of Operation and the Names and Marks.
- 5.2 Due Date; Interest. All monthly payments required by this Paragraph 5 and Paragraph 6 shall be paid to the Company by the day each month specified by the Company in the manuals or otherwise in writing for the preceding calendar month, and shall be submitte
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, details regarding royalty fees can be found in Paragraph 5, specifically section 5.1, titled "Royalties." This section outlines the royalty payment structure, stating that franchisees must pay the greater of 7% of their Gross Receipts or a minimum of $280 per month. These royalties are nonrefundable and must be paid without any deductions or offsets.
The 2025 FDD further clarifies that while royalties are applicable from the commencement of the Franchised Business operations, the minimum monthly payment begins the first full calendar month, 90 days after the business opens. This provides a grace period for new franchisees to establish their business before the minimum royalty payment is enforced. The document specifies that these royalty payments are in exchange for the license to utilize the System of Operation, Names, and Marks associated with Amerispec Inspection Services.
Paragraph 5.2, titled "Due Date; Interest," specifies that all monthly payments, including royalties, are due by the date specified by Amerispec Inspection Services in the manuals or in writing. These payments must be submitted along with any required monthly reports. Failure to submit payments or reports by the due date results in the amount being considered overdue. While the document does not explicitly state the consequences of overdue payments, it is common practice in franchising for late payments to incur interest or penalties, which a prospective franchisee should clarify with Amerispec Inspection Services.