When does the minimum royalty payment obligation begin for an Amerispec Inspection Services franchise?

According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, franchisees are obligated to pay royalties, which are the greater of 7% of gross receipts or a minimum of $280 per month. While royalties based on gross receipts are due from the date the franchise commences operations, the obligation to pay the minimum royalty fee begins the first full calendar month that starts 90 days after the franchise opens.

This means that an Amerispec Inspection Services franchisee will not be required to pay the minimum royalty fee for the first three months of operation. This can be a significant benefit, as it allows the franchisee to focus on building their business without the immediate pressure of meeting the minimum royalty payment. However, franchisees should be aware that the 7% royalty on gross receipts is still due from the start of operations, so if 7% of gross receipts exceeds $280 in any of those first three months, the franchisee will owe that amount.

For example, if an Amerispec Inspection Services franchise opens on March 15th, the minimum royalty payment of $280 would commence on July 1st. However, the 7% royalty on gross receipts would be due for the period of March 15th through March 31st, and for the months of April, May and June. This delayed start to the minimum royalty payments can provide some financial breathing room for new Amerispec Inspection Services franchisees as they establish their business.