What are the two components that determine the monthly royalty fee for an Amerispec Inspection Services franchise?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
e, all fees are uniformly imposed.
Item 6: Other Fees
OTHER FEES
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalties | The greater of (i) 7% of monthly Gross Receipts; or (ii) a minimum of $280 per month, except that the minimum fee does not apply for first 90 days after opening the Franchised Business. | Payment Due Date (See Note 1) | See Note 2 for the definition of "Gross Receipts." See Note 3 for an explanation of the Royalties. If we are charged a tax by your state or an agency in your state on the fee that we receive from you (other than federal income ta |
Source: Item 6 — Other Fees (FDD pages 14–18)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the monthly royalty fee is determined by two components: a percentage of monthly Gross Receipts and a minimum monthly fee. Specifically, the royalty is the greater of 7% of monthly Gross Receipts or a minimum of $280 per month. Gross Receipts are defined as the total revenues from all products and services offered by the franchise. However, this minimum fee is waived for the first 90 days after opening the franchise.
This means that new Amerispec Inspection Services franchisees get a temporary break on royalty payments, paying only the percentage of their Gross Receipts for the first three months. After this initial period, franchisees will pay either 7% of their Gross Receipts or $280, whichever is higher. This structure ensures that Amerispec Inspection Services receives a consistent income stream, even if a franchisee's sales are low.
It's important to note that if a state or agency within the state charges Amerispec Inspection Services a tax on the royalty fees received from the franchisee (excluding federal income taxes), the franchisee must pay an additional royalty equal to the amount of that tax. This condition could increase the overall royalty burden for franchisees in certain states. Franchisees should also be aware of how "Gross Receipts" are defined, as this figure directly impacts the royalty calculation.