What is the maximum cost that an Amerispec Inspection Services franchisee will pay for an audit?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
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 audit or inspection. If any audit discloses an understatement of the Gross Receipts of the Franchised Business for any period or periods, the Franchisee, within 10 days of receipt of the audit report, shall pay to the Company the Advertising Contributions and Royalties, if any, due on the previously unreported Gross Receipts, plus interest from
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services Franchise Disclosure Document, an Amerispec Inspection Services franchisee may have to pay for the cost of an audit. The costs that the franchisee pays are capped at $2,000.
However, if the Amerispec Inspection Services franchisee fails to cooperate with any reasonable request by the company for an audit or inspection, the franchisee shall reimburse Amerispec Inspection Services for any and all costs and expenses of conducting an audit or inspection. This includes, without limitation, travel expenses, room and board, and compensation of persons employed by the company to make the audit or inspection. This could potentially exceed the $2,000 cap.
It is important to note that if any audit discloses an understatement of the Gross Receipts of the Franchised Business for any period, the franchisee will have to pay Amerispec Inspection Services the Advertising Contributions and Royalties due on the previously unreported Gross Receipts, plus interest from the due date at the maximum rate permitted by law, not to exceed 1.5% per month. In addition, if an understatement for any period equals 3% or more of the Gross Receipts of the Franchised Business, there may be additional penalties.