Does the Amerispec Inspection Services agreement allow the Company to promote a financial interest of the Company?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
d service are maintained. The Franchisee shall pay to the Company all of the Company's actual costs for such person so assigned, including wages, travel, and living expenses.
- 9.12 Software. Franchisee will use in the Franchised Business the software system, including business contact management software and inspection software, all other existing or future communication or data storage systems, hardware components thereof and associated service, which the Company has developed and/or selected for the System of Operation (the "Computer System"). As part of the Computer System, the Company may require Franchisee to obtain, update, and use specified computer hardware and/or software including, without limitation, a license to use proprietary software developed by us or others (the "Software"). Franchisee's Computer System must be compatible with the Company's computer systems, must be connected to the Company's facilities by high-speed Internet with minimum requirements specified by the Company, and must be updated, maintained, and used in compliance with the Company's specifications, including the Operations Manual. The Company may require Franchisee to electronically upload or transmit information on a periodic basis (including daily). The Company also has the right to independently access sales information and other data produced by the Computer System. The AIS (AmeriSpec Inspection Software) is a software program that allows home inspectors to collect data while performing a home inspection and generate a home inspection report. The Company will assist Franchisee with Level 1 inspection software support and assist vendors with major bug fixes for the AIS. Currently, the Company charges an initial license fee of $1,000 per license for the first year that is included in the Marketing and Technology Bundle.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services FDD, the company can benefit financially from certain aspects of the franchise agreement. Specifically, franchisees are required to use a software system selected by Amerispec Inspection Services, and the company may require franchisees to obtain, update, and use specified computer hardware and/or software, including a license to use proprietary software developed by them or others.
Amerispec Inspection Services can designate a single source, which may be themselves or an affiliate, from whom the franchisee must purchase the computer system, software, hardware, or associated services. This allows Amerispec Inspection Services to profit from the sale or licensing of these required items and services. Franchisees must also purchase a Marketing and Technology Bundle from the company, further contributing to Amerispec Inspection Services's revenue.
Additionally, if a franchisee fails to maintain the standards of quality or service, Amerispec Inspection Services has the right to assign personnel to provide additional training, with the franchisee bearing all costs associated with this training, including wages, travel, and living expenses for the assigned personnel. This represents another potential avenue for Amerispec Inspection Services to generate revenue or offset expenses. The company also has the right to modify or change policies, procedures, and directives including, but not by way of limitation, by changing or adding to the services to be offered by the Franchised Business.