Is Amerispec Inspection Services obligated to audit the National Advertising Fund?
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 the 2025 FDD, Amerispec Inspection Services franchisees must contribute to the National Advertising Fund (Ad Fund). The contribution is the greater of 3% of monthly Gross Receipts or $160, although the $160 minimum does not apply until 90 days after opening. Amerispec Inspection Services can adjust this amount with written notice, but it will not exceed 3% of Gross Receipts.
Amerispec Inspection Services does not contribute to the Ad Fund, but any company-owned stores would contribute on the same basis as franchisees. Funds not spent in a fiscal year remain in the Ad Fund for future use. Upon written request, Amerispec Inspection Services will provide a financial statement of the Ad Fund certified by an executive officer.
However, Amerispec Inspection Services is not obligated to audit the Ad Fund. This means that while financial statements are available upon request, they are not required to undergo a formal audit by an independent accounting firm. This is a potential risk for franchisees, as there is less independent oversight of the fund's management and expenditures.