After the Amerispec Inspection Services agreement terminates, for how long does the post-term non-compete agreement last?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
3.1 of this Agreement; provided, however, that this provision shall not apply to any ownership of the Franchisee of less than 1% of the outstanding equity securities of any publicly held corporation.
- 15.3 Post-Term Covenant Not to Compete. The Franchisee covenants that for a period of 1 year after the later of the following terminating events: (i) any transfer, repurchase or termination of this Agreement; (ii) the expiration of this Agreement (if a successor franchise or renewal term is not granted); (iii) the date on which the Franchisee stops operating a competitive business (including continued operation of the Franchised Business whether or not operated under the Names and Marks) or (iv) the last date of the use of the Names and Marks and/or System of Operation, the Franchisee shall not, either directly or indirectly, for itself or through, on behalf of, or in conjunction with any other person, persons, partnership, corporation, or other entity do or engage in any act proscribed by Paragraph 15.2 of this Agreement, except that the restrictions contained in Paragraph 15.2.2 of this Agreement, shall be limited during the post term period to within the Territory described in Paragraph 3.1 of this Agreement and a 75-mile radius thereof.
- 15.4 Independent Covenants. The parties agree that each of the covenants contained in Paragraphs 15.2 and 15.3 shall be construed as independent of any other covenant or provision of this Agreement.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services Franchise Disclosure Document, franchisees are subject to a post-term covenant not to compete for one year after certain terminating events. These events include any transfer, repurchase, or termination of the agreement, the expiration of the agreement if a successor franchise or renewal term is not granted, the date on which the franchisee stops operating a competitive business, or the last date of the use of the Names and Marks and/or System of Operation.
During this one-year period, the franchisee is restricted from engaging in activities proscribed by Paragraph 15.2 of the agreement. The restrictions contained in Paragraph 15.2.2 are limited during the post-term period to within the Territory described in Paragraph 3.1 of the agreement and a 75-mile radius thereof.
Amerispec Inspection Services also has the right to reduce the scope of any covenant set forth in Paragraphs 15.2 and 15.3 of the agreement or any portion thereof, without the franchisee's consent, effective immediately upon receipt by the franchisee of the written notice of the reduction. The franchisee agrees to comply with any covenant as so modified, which shall be fully enforceable.