Are the royalty payments to Amerispec Inspection Services refundable?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee.
- 4.3 Upon the execution of this Agreement by the Company, the Initial Franchise Fee shall be deemed fully earned and non-refundable
5. ROYALTIES
- 5.1 Royalties. The Franchisee shall pay to the Company, without set off, nonrefundable royalties equal to the greater of 7% of the Gross Receipts of the Franchised Business or a minimum payment of $280 per month ("Royalties"). While Royalties are due on business generated from the date the Franchised Business commences operations, payment of the minimum fee shall commence the first full calendar month that begins 90 days after opening the Franchised Business. The Royalties are paid in consideration of the license to use the System of Operation and the Names and Marks.
- 5.2 Due Date; Interest. All monthly payments required by this Paragraph 5 and Paragraph 6 shall be paid to the Company by the day each month specified by the Company in the manuals or otherwise in writing for the preceding calendar month, and shall be submitte
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, royalty payments are non-refundable. Franchisees must pay royalties equal to the greater of 7% of the Gross Receipts of the Franchised Business or a minimum payment of $280 per month. These royalties are paid in exchange for the license to use the System of Operation and the Names and Marks of Amerispec Inspection Services.
Payment of the minimum royalty fee begins the first full calendar month that starts 90 days after the franchise opens. This means a new franchisee gets a grace period before the minimum royalty kicks in, but royalties based on 7% of gross receipts start accruing from day one.
All monthly payments, including royalties, are due on the day each month specified by Amerispec Inspection Services in the manuals or in writing. Payments are for the preceding calendar month and must be submitted with any required monthly reports. Any payment or report not received by the due date is considered overdue.
The non-refundable nature of the royalty payments means that even if a franchisee's business performs poorly, or if the franchise agreement is terminated, the franchisee will not receive a refund of royalties already paid to Amerispec Inspection Services. This is a standard practice in franchising, as the royalties compensate the franchisor for ongoing support and the use of their brand and system.