What is the Payment Due Date for Monthly Fees for Amerispec Inspection Services franchisees?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise stated, all fees are uniformly imposed by, payable to or collected by, us, and are nonrefundable; however, we reserve the right to waive or amend any of the fees for circumstances we believe warrant a waiver or amendment, including but not limited to an underlying increase in costs we incur either directly or through the use of approved vendors. You must participate in our current electronic funds transfer and reporting program(s). For monthly fees, such as the Royalties and Advertising Contribution (the "Monthly Fees"), the fee must be reported by the 10th day of the month and paid electronically by the date specified by us following the month in which Gross Receipts are made (currently, the 20th day of the month) (the "Payment Due Date"). If you have not reported Gross Receipts for any reporting period, we will be authorized to debit your bank account (the "Account") in an amount equal to the greater of the non-reported payment (if we can reasonably estimate or determine the owed amount) or one hundred twenty percent (120%) of the Monthly Fees transferred from such Account for the last reporting period for which a report of Gross Receipts was provided to us. If at any time we determine that you have underreported Gross Receipts or underpaid any fees due to us under the Franchise Agreement, we will be authorized to immediately initiate a debit to the Account in the appropriate amount, including interest as provided for in this Agreement. An overpayment will be credited to the Account through a credit effective as of the first reporting date after we and you determine that such credit is due.
Source: Item 6 — Other Fees (FDD pages 14–18)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, monthly fees, such as royalties and advertising contributions, must be reported by the 10th day of the month. Payment must be made electronically by the 20th day of the month following the month in which gross receipts are made. This payment due date is referred to as the "Payment Due Date" in the document.
Amerispec Inspection Services requires franchisees to participate in their electronic funds transfer and reporting programs. If a franchisee fails to report gross receipts for any reporting period, Amerispec Inspection Services is authorized to debit the franchisee's bank account. The debit amount will be the greater of the non-reported payment amount (if reasonably estimated) or 120% of the monthly fees transferred from the account for the last reporting period with a provided gross receipts report.
Furthermore, if Amerispec Inspection Services determines that a franchisee has underreported gross receipts or underpaid any fees, they are authorized to immediately debit the franchisee's account for the deficient amount, including interest as specified in the Franchise Agreement. Overpayments will be credited to the franchisee's account, effective as of the first reporting date after the credit is determined to be due.
These policies ensure timely payments and provide Amerispec Inspection Services with mechanisms to address underreporting or non-reporting of gross receipts, which is a fairly standard practice in franchising to protect the franchisor's revenue stream. Franchisees should be aware of these requirements and maintain accurate records to avoid potential debits or penalties.