Does Amerispec Inspection Services' acceptance of payment from the franchisee constitute a waiver of any provision of the agreement?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
No acceptance by the Company of any payment by the Franchisee and no failure, refusal or neglect of the Company or the Franchisee to exercise any right under this Agreement or to insist upon full compliance by the other with its obligations hereunder or with any specification, standard or operating procedure shall constitute a waiver of any provision of this Agreement or any specification, standard or operating procedure; provided, however, that such failure, refusal or neglect to exercise any right under this Agreement or to insist upon full compliance by the other with its obligations under this Agreement or under state or federal law, or with any specification, standard or operating procedure, shall constitute a waiver of any default arising under this Agreement or under state or federal law and shall preclude exercise or enforcement of any right or remedy arising therefrom, unless written notice of such default is provided by the non-defaulting party within twelve (12) months after such right or default occurs.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services' 2025 Franchise Disclosure Document, the company's acceptance of payment from a franchisee does not automatically constitute a waiver of any provision within the franchise agreement. However, a failure to provide written notice of default within twelve months of its occurrence will constitute a waiver of that default.
Specifically, Amerispec Inspection Services retains its rights under the agreement even if it accepts payments or doesn't immediately enforce compliance. This means that Amerispec Inspection Services can still insist on full compliance with all terms of the agreement, standards, and operating procedures, regardless of whether they've accepted payments or not immediately addressed a violation.
This provision protects Amerispec Inspection Services by ensuring that their actions or inactions do not inadvertently relinquish their rights. However, the franchisee is also protected by the 12 month notice requirement. This ensures that Amerispec Inspection Services must formally address any defaults in a timely manner, preventing the accumulation of unaddressed issues that could later be used against the franchisee. Franchisees should be aware of this clause and ensure they understand their obligations and the potential consequences of any actions that might be considered a default under the agreement.