What is the name of the national advertising fund that Amerispec Inspection Services franchisees must contribute to?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
sed location and demographics, 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 condition of the Ad Fund, certified by one of our executive officers. We are not obligated to audit the Ad Fund.
We do not use any portion of the Ad Fund in a way that is principally aimed at helping us sell franchises.
We shall have sole discretion over the methods of advertising, selection of media, locale of advertising, and contents, terms and conditions of advertising campaigns and promotional programs. Currently, the source of advertising material comes primarily from in-house, but we also may use outside advertising sources.
In 2024, the Ad Fund was spent on: digital media (12%); assets (11%); continuing education (7%); contributions to the Co-Op (as defined below) (13%); and administrative and miscellaneous costs (57%).
Advertising from the Ad Fund is intended to maximize the public's awareness of the franchise system. We are not obligated to ensure that any individual franchisee benefits directly, on a pro rata basis or at all, from the placement, if any, of such advertising in its local market. We are not required to spend any amount on advertising in your Territory.
Although we do not have an advertising council, we have a National Franchise Council consisting of members from various regions of the country. The members are nominated and elected by their peers and are consulted regarding new ideas for use of the Ad Fund, as well as departures from any existing programs. We may add or remove members and dissolve this council at any time, and we retain control over all decisions related to the Ad Fund.
Besides the Ad Fund, neither franchisees nor company-owned outlets are required to participate in any other advertising funds.
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, all franchisees must contribute to the National Advertising Fund, which is referred to as the "Ad Fund". This fund is used for national-level marketing initiatives. As of the date of the 2025 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).
Amerispec Inspection Services may adjust this contribution amount with written notice, but it will not exceed 3% of Gross Receipts. The company does not contribute to the Ad Fund, but company-owned stores would contribute on the same basis as franchisees. Any unspent funds in the Ad Fund at the end of the fiscal year are retained for use in the following year.
Upon written request, Amerispec Inspection Services will provide a written statement of the financial condition of the Ad Fund, certified by one of their executive officers, but they are not obligated to audit the fund. The Ad Fund is not used to help Amerispec Inspection Services sell franchises. Franchisees may also participate in a voluntary cooperative advertising program (the "Co-Op") to increase local advertising and marketing programs, which is fully funded by the Ad Fund and administered by Amerispec Inspection Services.