AmSpirit Business Connections Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$4,900 - $54,600
Franchise Fee
$1,000
Total US Locations
19
Business Summary
AmSpirit Business Connections organizes and provides administrative support services to groups of entrepreneurs, sales representatives, and professionals who meet weekly. The primary purpose of these groups, known as Chapters, is to exchange business referrals. AmSpirit Business Connections franchisees facilitate these Chapters, whose members pay application and membership dues. Meetings can be held in person or virtually.
Corporate History
AmSpirit Business Connections (the franchised business model) originated with AmSpirit Business Connections, Inc., an Ohio corporation formed in 1990 by Frank J. Agin and Linda S. Agin. This affiliate began organizing and operating AmSpirit Business Connections Chapters in 2004, a business which organizes groups of entrepreneurs and professionals for business referrals. AmSpirit Franchise Corporation, also an Ohio corporation formed by the Agins on July 15, 2005, started offering AmSpirit Business Connections franchises in February 2006. The franchisor itself has not operated an AmSpirit Business, but its affiliate, AmSpirit Business Connections, Inc., currently operates one AmSpirit Business with approximately 11 Chapters in Ohio and Mississippi.
Financial Overview
Investment Range
$4,900 - $54,600
Franchise Fee (Low)
$1,000
Franchise Fee (High)
$10,000
Royalty %
7%
Equipment Costs (High)
$3,500
Working Capital
$3,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
AmSpirit Franchise Corporation appears to be in a solid financial position, with increasing working capital and retained earnings over the past three fiscal years. Its cash flow from operating activities has been consistently positive, indicating a healthy operational performance. The independent auditors did not identify any substantial doubt about AmSpirit Franchise Corporation's ability to continue as a going concern. A key aspect of AmSpirit Franchise Corporation's financial structure is its reliance on related parties: it pays a 5% monthly royalty to AmSpirit Holding Company for trademark usage and a substantial 70% of its gross revenue from franchisee monthly fees to AmSpirit Business Connections, Inc. for administrative and intellectual property services. This arrangement highlights a significant portion of its income being transferred to affiliates for core operational components.
Financing Details
AmSpirit Franchise Corporation or its affiliate may offer financing for the Unlimited Chapter franchise fee or the Going Concern Payment. This financing is decided on a case-by-case basis, taking into account factors like the franchisee's credit history, financial condition, business savvy, and any previous relationship with AmSpirit Business Connections. AmSpirit Franchise Corporation can finance up to 100% of both the initial franchise fee and the Going Concern Payment. The interest rate is the current Prime Rate plus 3% annually (for instance, if the Prime Rate is 7.50%, the interest rate would be 10.50%). Repayment involves monthly installments of principal and interest, typically amortized over 12 to 18 months. It's important to note that AmSpirit Business Connections does not offer financing for Single Chapter franchises. If financing is provided, franchisees will sign a promissory note with provisions such as the right to prepay without penalty, but also consequences for default, including acceleration of the entire debt, responsibility for collection costs, and potential termination of the franchise agreement. The note can be assigned to a third party, but AmSpirit Franchise Corporation remains responsible for providing support services under the franchise agreement. No security interest is required for this financing, but a personal guarantee is needed if the franchisee is a business entity.
Performance Metrics
Total US Locations
19
Franchised Units
18
Corporate Units
1
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
AmSpirit Franchise Corporation has no litigation to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
AmSpirit Franchise Corporation has no bankruptcy history to disclose, as no bankruptcy information is required to be disclosed in Item 4 of this FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their AmSpirit Business Connections franchise, franchisees must provide written notice between 90 to 180 days before the current term ends. They must be in full compliance with all terms of their franchise agreement and any other agreements with AmSpirit, and must execute AmSpirit's then-current Franchise Agreement, which may include materially different terms such as increased royalty fees, advertising fees, advertising expenditure requirements, and a different Franchised Area. Franchisees are also required to sign a general release of all claims against AmSpirit through the date of renewal, though this may not be enforceable if it waives rights under certain state franchise laws (e.g., California, Indiana, Michigan). Additionally, franchisees must comply with AmSpirit's then-current training requirements and pay a non-refundable renewal fee equal to 20% of the then-applicable initial franchise fee.
Training & Support Program
Franchisor Assistance
AmSpirit Business Connections provides extensive support to its franchisees both before and after opening. Before opening, AmSpirit Business Connections reviews and approves the franchisee's business location and designates the franchised area. It provides information on any existing operations in that area, including Area Director agreements, membership rosters, and revenue collection data. AmSpirit Business Connections offers an initial training program for up to four individuals at no tuition cost for the first four attendees. It also assists with planning and developing initial pre-opening and promotional programs and provides access to its Operations Manual and other training aids. After opening, AmSpirit Business Connections provides ongoing advice and consultation by telephone or electronic communications free of charge, with on-site visits incurring staff cost reimbursement. AmSpirit Business Connections may also host an annual conference for franchisees and their staff, where attendees are responsible for a reasonable fee and their own travel and living expenses. AmSpirit Business Connections maintains an electronic database of members, delivers monthly membership rosters, handles member invoicing (with franchisees reimbursing production/mailing costs), processes new member applications and initiation fees, and sends payment reminders. Additionally, AmSpirit Business Connections provides merchandising, marketing, and other data/advice, ongoing individual or group consultation, bulletins, brochures, and reports. It maintains a dedicated website for franchisees and members, offering access to franchisees-only information, and may offer other resources as they are developed.
Initial Training Hours
30
Training Location
Online, Electronic Communications and Platforms
Ongoing Support
After opening, AmSpirit Business Connections provides ongoing advice and consultation by telephone or other electronic communications at a reasonable frequency, free of charge. AmSpirit Business Connections may also produce and conduct an annual conference for franchisees and their managers, where attendees are responsible for a reasonable fee for the conference, as well as their own travel, lodging, and meals. AmSpirit Business Connections maintains an electronic database for franchisee members, delivers monthly membership rosters, provides invoicing services for active members (with franchisees reimbursing production and mailing costs), processes new member applications and initiation fees, and sends periodic payment reminders. Additionally, AmSpirit Business Connections shares merchandising and marketing data and advice, offers continuing individual or group consultation, publishes bulletins, brochures, and reports, and maintains an AmSpirit website that provides franchisees with access to exclusive information.
Franchise Requirements
Ideal Candidate Profile
AmSpirit Business Connections generally seeks individuals who can either directly supervise their franchise or appoint an approved and trained manager to oversee operations. While personal participation is strongly recommended, franchisees are not required to devote full-time efforts to the business; most current franchisees operate on a part-time basis. Franchisees have the option to employ area directors to manage their chapters. Financial resources must be adequate to cover the estimated initial investment, which ranges from $13,900 to $24,600 (or $21,400 to $32,100 starting January 1, 2026) for an Unlimited Chapter franchise without a Going Concern Payment, and $4,900 to $15,600 (or $5,900 to $16,600 starting January 1, 2026) for a Single Chapter franchise. If a Going Concern Payment is made, the range for an Unlimited Chapter franchise is $19,900 to $54,600 (or $27,400 to $62,100 starting January 1, 2026).
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
home-based
Owner Participation
part-time
Territory Type
non-exclusive
Staffing Notes
Most AmSpirit Business Connections franchisees operate their business on a part-time basis. Franchisees are not required to participate personally if the business is under the direct supervision of an approved manager. An AmSpirit Business Connections franchisee's business must always be under their direct supervision or that of a trained, competent manager. Franchisees may use the services of an area director, who can be an employee or an independent contractor, to oversee and manage their Chapters. All franchisees, managers, and area directors must successfully complete the initial training program and any mandatory follow-up training. If the franchisee is a business entity, at least one individual with a 51% ownership interest must be directly involved in the day-to-day operation.