Who pays for an independent audit of an Amerispec Inspection Services franchisee's books?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
rsonal and business tax returns specified above to the Company and hereby waive any right to refuse to provide tax return or any privilege afforded by state or federal laws, rules or regulations.
- 12.5 Audit Costs. The Company shall also have the right, at any time, to have an independent audit made at its cost of the books of the Franchisee. Franchisee shall pay the cost of the audit. These costs shall be capped at $2,000, subject to the terms of this paragraph. If Franchisee fails to fully cooperate with any reasonable request by the Company for an audit or inspection, Franchisee shall reimburse the Company for any and all costs and expenses of conducting an audit or inspection including, without limitation, travel expenses, room and board, and compensation of persons employed by the Company to make the audit or inspection. If any audit discloses an understatement of the Gross Receipts of the Franchised Business for any period or periods, the Franchisee, within 10 days of receipt of the audit report, shall pay to the Company the Advertising Contributions and Royalties, if any, due on the previously unreported Gross Receipts, plus interest from
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the franchisee is generally responsible for covering the costs of an independent audit of their business records. However, these audit costs are capped at $2,000.
There are exceptions to this general rule. If the Amerispec Inspection Services franchisee fails to cooperate with reasonable requests during an audit or inspection, they will be responsible for reimbursing the franchisor for all associated costs and expenses. These costs include travel, lodging, and compensation for personnel involved in conducting the audit or inspection.
Furthermore, if the audit reveals an understatement of gross receipts, the franchisee is obligated to pay the owed advertising contributions and royalties on the unreported amount, along with interest. If the understatement equals 3% or more of the gross receipts, additional penalties may apply.