What is the minimum monthly Advertising Contribution required for Amerispec Inspection Services franchisees?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
cs, traffic patterns, competition, and similar factors.
Advertising Programs
National Advertising Fund. All franchisees must contribute the Advertising Contribution to the National Advertising Fund (the "Ad Fund"). As of the date of this Disclosure Document, the Advertising Contribution is the greater of 3% of the monthly Gross Receipts of each Franchised Business or $160 (except the $160 minimum does not apply until 90 days after opening the Franchised Business). We may adjust this contribution amount upon written notice to you, but it shall not exceed 3% of Gross Receipts. We do not contribute to the Ad Fund. Although there are no company-owned stores, all company-owned stores would contribute to the Ad Fund on the same basis as other franchisees. Any amounts in the Ad Fund that are not spent in any fiscal year are kept in the Ad Fund for
use in the following year. Upon written request, we will provide a written statement of the financial
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 24–31)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, franchisees are required to contribute to the National Advertising Fund (Ad Fund). As of the date of the FDD, this contribution is the greater of 3% of the monthly Gross Receipts of each Franchised Business or $160. However, the $160 minimum does not apply until 90 days after opening the Franchised Business.
This means that for the first 90 days of operation, an Amerispec Inspection Services franchisee's advertising contribution will be based solely on 3% of their gross receipts, if that amount is less than $160. After this initial period, the minimum contribution is $160 per month, regardless of gross receipts, unless 3% of gross receipts exceeds that amount. The franchisor, Amerispec Inspection Services, retains the right to adjust this contribution amount with written notice, but it will not exceed 3% of Gross Receipts.
Franchisees should be aware that this advertising contribution is mandatory and ongoing. It's important to factor this monthly expense into their financial projections. While the franchisor can adjust the contribution amount, it is capped at 3% of gross receipts, providing some level of predictability. Any unspent funds in the Ad Fund at the end of the fiscal year are carried over for use in the following year. Franchisees can request a written statement of the Ad Fund's financial condition, certified by an executive officer of Amerispec Inspection Services.