What is the minimum monthly royalty fee for an Amerispec Inspection Services franchise?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
e, all fees are uniformly imposed.
Item 6: Other Fees
OTHER FEES
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalties | The greater of (i) 7% of monthly Gross Receipts; or (ii) a minimum of $280 per month, except that the minimum fee does not apply for first 90 days after opening the Franchised Business. | Payment Due Date (See Note 1) | See Note 2 for the definition of "Gross Receipts." See Note 3 for an explanation of the Royalties. If we are charged a tax by your state or an agency in your state on the fee that we receive from you (other than federal income ta |
Source: Item 6 — Other Fees (FDD pages 14–18)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, franchisees must pay a monthly royalty fee. This fee is the greater of 7% of monthly Gross Receipts or a minimum of $280 per month. Gross Receipts include all revenues from products and services offered by the franchise, whether payment is received by cash or credit. It also includes the fair market value of goods delivered and services rendered in consideration for goods and services provided in conjunction with the Franchised Business. However, bona fide refunds, credits given to customers, uncollectible checks, and sales taxes collected and remitted to governmental taxing authorities are excluded from Gross Receipts.
This minimum royalty fee is a recurring monthly expense that Amerispec Inspection Services franchisees must factor into their operating costs. The minimum royalty fee does not apply for the first 90 days after opening the Franchised Business, providing some financial relief during the initial startup phase. However, after this initial period, franchisees must meet the minimum payment of $280 or 7% of their Gross Receipts, whichever is greater.
It's important to note that if a state or agency charges Amerispec Inspection Services a tax on the royalty fee received from the franchisee (excluding federal income taxes), the franchisee must pay an additional royalty equal to the amount of the tax. Franchisees should be aware of these conditions and factor them into their financial planning. Understanding how Gross Receipts are defined and what constitutes taxable revenue is crucial for accurate reporting and payment of royalties to Amerispec Inspection Services.