Will Amerispec Inspection Services provide a financial statement of the Ad Fund upon request?
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 condition of the Ad Fund, certified by one of our executive officers. We are not obligated to audit the Ad
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, franchisees can request a written statement regarding the Ad Fund's financial condition. Upon a franchisee's written request, Amerispec Inspection Services will provide a written statement of the financial condition of the Ad Fund, which will be certified by one of their executive officers. However, Amerispec Inspection Services is not obligated to conduct an audit of the Ad Fund.
This means that while franchisees have a right to receive a financial statement, it's important to note that this statement is not required to be audited by an independent accounting firm. An audit would provide a higher level of assurance regarding the accuracy of the financial information. The statement will, however, be certified by an executive officer of Amerispec Inspection Services, attesting to its accuracy to the best of their knowledge.
This practice is fairly common in franchising, where franchisors manage advertising funds contributed by franchisees. While an audit provides more rigorous oversight, a certified statement still offers a degree of transparency and accountability. Prospective franchisees should consider the implications of not having a full audit when evaluating the use of advertising funds and the overall financial management practices of Amerispec Inspection Services.