What is the maximum cost of the audit that Amerispec Inspection Services can require for franchise renewal?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
tax returns specified above to the Company and hereby waive any right to refuse to provide tax return or any privilege afforded by state or federal laws, rules or regulations.
- 12.5 Audit Costs. The Company shall also have the right, at any time, to have an independent audit made at its cost of the books of the Franchisee. Franchisee shall pay the cost of the audit. These costs shall be capped at $2,000, subject to the terms of this paragraph. If Franchisee fails to fully cooperate with any reasonable request by the Company for an audit or inspection, Franchisee shall reimburse the Company for any and all costs and expenses of conducting an audit or inspection including, without limitation, travel expenses, room and board, and compensation of persons employed by the Company to make the audi
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the company has the right to conduct independent audits of a franchisee's books at any time, initially at the company's expense. However, the franchisee is responsible for the cost of the audit, which is capped at $2,000, as outlined in the agreement.
If a franchisee fails to cooperate with reasonable requests during an audit or inspection, they will be responsible for reimbursing Amerispec Inspection Services for all associated costs and expenses. These costs include travel, lodging, and compensation for personnel involved in the audit or inspection.
Furthermore, if an audit reveals an understatement of gross receipts of 3% or more for any period, the franchisee is obligated to cover the full cost of the audit or inspection. This includes charges from independent accountants or attorneys, as well as travel expenses, room and board, and compensation for individuals employed by Amerispec Inspection Services to conduct the audit or inspection. Franchisees must reimburse Amerispec Inspection Services within 10 days of receiving an invoice, and any unpaid amounts will accrue interest at the maximum rate permitted by law, not exceeding 1.5% per month.