What is the purpose of the Amerispec Inspection Services Co-Op program?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
we retain the right, in our sole discretion, to require participation in other advertising funds in the future.
Cooperatives. Franchisee may participate in a voluntary cooperative advertising program (the "Co-Op") that is intended to encourage AmeriSpec franchisees to increase local advertising and marketing programs by supplementing some of the expenses associated with these marketing efforts. While the Ad Fund mostly focuses on expenses for marketing initiatives on a national level, Co-Op funds provide the additional support needed to increase local marketing efforts. The Co-Op program is fully funded by the Ad Fund and administered by us. The Co-Op is available for all AmeriSpec franchisees that contributed to the Ad Fund and are in compliance with the rules and guidelines. To qualify for the Co-Op, franchisee must meet and maintain certain performance standards and requirements, such as the following: being current on reporting and paying all fees due to us; maintaining current all applicable accounts receivable with us or our affiliates; having live answering available Monday through Friday during business hours; being in compliance with its obligations as a franchisee; and timely submitting receipts to the Co-Op.
In 2024, each franchisee's Co-Op funds were based on their 2024 customer level revenue (CLR). A franchisee is eligible for a 1-1.5% Co-Op allocation rate depending on its CLR threshold or a minimum of $400. For calculating the 2024 allocations, the franchisee's total Gross Receipts reported from 2024 is multiplied by the applicable NAF Co-Op rate in which it falls. For example, a business that generated $35,000 in CLR in 2024 would be eligible for a Co-Op allotment of $35,000 x .01 (the allocation rate for this threshold of CLR) = $350. However, any owner that contributed to 2024 NAF is eligible for a minimum of $400. We currently permit participants in Co-Ops to submit receipts of such shared expenses to us, and we may, in turn, use the Ad Fund to reimburse such participants for a portion of such shared expenditures. We shall determine the percentage of such Co-Op expenditures that may be reimbursed from the Ad Fund, if any. The Co-Op will not have prepared annual financial statements. We have the sole right to form, ch
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 24–31)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services Franchise Disclosure Document, the voluntary cooperative advertising program (Co-Op) aims to boost local advertising and marketing initiatives for franchisees. It achieves this by helping to cover some of the costs linked to these marketing activities. The Ad Fund primarily focuses on national-level marketing, while Co-Op funds offer extra support for enhancing local marketing efforts.
The Co-Op program is entirely funded by the Ad Fund and managed by Amerispec Inspection Services. To be eligible, franchisees must contribute to the Ad Fund and adhere to the program's rules and guidelines. Meeting specific performance standards and requirements is also necessary, such as being current on all reporting and fee payments, maintaining up-to-date accounts receivable, ensuring live answering availability during business hours from Monday to Friday, complying with all franchisee obligations, and promptly submitting receipts to the Co-Op.
In 2024, each franchisee's Co-Op funds were determined by their 2024 customer level revenue (CLR). Franchisees could qualify for a Co-Op allocation rate of 1% to 1.5%, depending on their CLR threshold, or a minimum of $400. For instance, a business with $35,000 in CLR in 2024 would be eligible for a Co-Op allotment of $350 (calculated as $35,000 x 0.01). However, any owner that contributed to the 2024 NAF is eligible for a minimum of $400. Amerispec Inspection Services permits Co-Op participants to submit receipts for shared expenses, and the company may use the Ad Fund to reimburse a portion of these expenditures. The percentage of reimbursable Co-Op expenditures is determined at the sole discretion of Amerispec Inspection Services.