For what purposes can the Advertising Fund be used by Amerispec Inspection Services?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
These fees will commence at the same time as the Royalties described in Paragraph 5.1 and will be transmitted to the Company at the same time and in the same manner as is required of the Royalties.
- 6.2 Advertising Fund.
Reasonable disbursements from the Advertising Fund shall be made solely for the payment of expenses incurred in connection with the general promotion of the Names and Marks and the AmeriSpec franchise system, including, but not limited to: (i) the cost of formulating, developing and implementing media advertising and public relations campaigns; (ii) the cost of formulating, developing and implementing promotional programs; (iii) the cost of monitoring and/or managing social media relating to the brand, (iv) at the option of the Company, reimbursement of all or part of each Franchisee's cost of purchasing promotional materials used in connection with promotional programs authorized by the Company; and (v) the reasonable cost of administering the Advertising Fund, including accounting expenses and the actual cost of salaries and fringe benefits paid to the Company's employees engaged in administration of the Advertising Fund.
There shall be no requirement that all or any part of the Advertising Fund be disbursed within any accounting period.
Losses sustained, or gains accrued, in the Advertising Fund shall carry over to subsequent fiscal years.
All interest if any earned by the Advertising Fund shall be used for the payment of the foregoing expenses in connection with promotion of the Names and Marks, before application of any principal to those expenses.
Methods of advertising, selection of media, locale of advertising, and contents, terms and conditions of advertising campaigns and promotional programs shall be within the sole discretion of the Company.
The Franchisee understands that such advertising is intended to maximize the public's awareness of the AmeriSpec franchise system.
Accordingly, the Company undertakes no obligation to ensure that any individual franchisee benefits directly or on a pro rata basis from the placement, if any, of such advertising in its local market.
If requested by the Franchisee, the Company shall provide the Franchisee an annual statement of the financial condition of the Advertising Fund, certified by an executive officer of the Company.
- 6.3 Disbursements.
Disbursements from the Advertising Fund shall not be made for the payment of expenses incurred in connection with the Company's direct marketing of franchise licenses.
Notwithstanding the foregoing, a brief statement regarding the availability of AmeriSpec franchises may be included in advertising and other items produced using the Advertising Fund.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services' 2025 Franchise Disclosure Document, the Advertising Fund is used for the general promotion of the Names and Marks and the Amerispec Inspection Services franchise system. This includes expenses related to media advertising, public relations campaigns, and promotional programs. The fund can also cover the costs of monitoring and managing social media related to the brand.
Amerispec Inspection Services has the option to reimburse franchisees for the cost of promotional materials used in authorized promotional programs. The fund also covers the reasonable costs of administering the Advertising Fund, including accounting expenses, salaries, and benefits for Amerispec Inspection Services' employees involved in administering the fund. Any interest earned by the Advertising Fund will be used for promoting the Names and Marks before using the principal.
The methods of advertising, media selection, advertising locations, and the content of advertising campaigns are at the sole discretion of Amerispec Inspection Services. While the advertising aims to maximize public awareness of the Amerispec Inspection Services franchise system, there is no guarantee that individual franchisees will directly benefit from advertising in their local market. However, Amerispec Inspection Services will provide an annual statement of the Advertising Fund's financial condition if requested by the franchisee.
It is important to note that the Advertising Fund cannot be used for expenses related to Amerispec Inspection Services' direct marketing of franchise licenses. However, a brief statement about the availability of Amerispec Inspection Services franchises may be included in advertising and other items produced using the Advertising Fund.