What is the maximum cost an Amerispec Inspection Services franchisee will pay for an audit?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 an
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services Franchise Disclosure Document, under normal circumstances, an Amerispec Inspection Services franchisee will pay up to $2,000 for the cost of an audit. This cost is subject to specific terms outlined in the agreement.
However, if the Amerispec Inspection Services franchisee fails to cooperate with reasonable requests during an audit or inspection, they may be required to reimburse Amerispec Inspection Services for all associated costs and expenses. These costs could include travel, lodging, and compensation for personnel involved in conducting the audit or inspection. This implies that the $2,000 cap does not apply in cases of non-cooperation.
Additionally, if an audit reveals that the franchisee has understated their gross receipts by 3% or more for any period, the franchisee will be responsible for paying the Advertising Contributions and Royalties due on the unreported gross receipts. They will also be charged interest from the original due date, up to the maximum rate permitted by law, which cannot exceed 1.5% per month. This is a common practice in franchising to ensure accurate reporting and payment of royalties and advertising fees.