What constitutes a curable default that could lead to termination of the Amerispec Inspection Services franchise agreement?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise agreement | Summary |
|---|---|---|
| disclaimed. Any other promises may not be enforceable. Notwithstanding the foregoing, nothing in the franchise agreement or any related agreement is intended to disclaim the representations made in the Franchise Disclosure Document. | ||
| u. Dispute resolution | Paragraph | In certain circumstances arbitration is mandatory (subject to state |
| by arbitration or mediation | 21 | law). |
| v. Choice of forum | Paragraph 21 | Subject to applicable state laws, all claims must be arbitrated or litigated in the city in which our principal place of business is located (currently, Memphis, Tennessee). |
| w. Choice of Law | Paragraph 21 Section in | Subject to applicable state laws, Tennessee law applies. |
| Provision | franchise agreement | Summary |
| g. "Cause" defined – curable defaults | Paragraphs 19.3 and 19.4 | We may terminate the Franchise Agreement for any reason constituting good cause, after providing you with 30 days to cure the default, other than the defaults in Section 19.2. In addition, you have 10 days to cure any noncompliance with federal, state or local regulations applicable to your business, 5 days to cure any levy on your Franchise Agreement, and 5 days to cure any late payment and fees to us. |
Source: Item 17 — Renewal, Termination, Transfer and Dispute Resolution. (FDD pages 36–39)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the franchise agreement can be terminated for good cause if the franchisee fails to comply with any lawful requirement of the agreement. In such cases, Amerispec Inspection Services will provide a 30-day notice to cure the failure. However, this cure period does not apply to defaults specified in Section 19.2 of the agreement.
Additionally, the franchisee has a limited time to cure specific defaults. They have 10 days to address any noncompliance with federal, state, or local regulations applicable to their business. A 5-day cure period is provided for any levy on the Franchise Agreement, as well as for late payments and fees owed to Amerispec Inspection Services.
It is important for a prospective Amerispec Inspection Services franchisee to understand the distinction between curable and non-curable defaults, as well as the specific cure periods allowed for different types of violations. Failure to cure a curable default within the allotted time can result in the termination of the franchise agreement and the loss of the franchise.