For Amerispec Inspection Services, over what period are leasehold improvements amortized?

According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset.

For a prospective franchisee, this means that any investments made to improve a leased property for the Amerispec Inspection Services business will be depreciated for accounting purposes. The amortization period will depend on how long the lease is for the property and the estimated lifespan of the improvements.

For example, if a franchisee signs a five-year lease and invests in leasehold improvements with an estimated useful life of ten years, the improvements will be amortized over the five-year lease term. Conversely, if the lease is for ten years and the improvements are expected to last only five years, the amortization period will be five years. This impacts the franchisee's financial statements and tax obligations during the term of the franchise.