What damages can Amerispec Inspection Services charge a franchisee upon termination, related to royalties?

According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, if a franchise agreement is terminated or expires, the franchisee is responsible for paying any outstanding royalties and other charges that are due or will become due. In addition to these unpaid amounts, Amerispec Inspection Services can also charge damages for the right to receive royalties for each remaining year or portion thereof in the original term of the agreement.

This means that if a franchisee's agreement is terminated early, Amerispec Inspection Services can seek compensation for the royalties they would have expected to receive had the agreement remained in effect for its full term. This could potentially be a substantial financial burden for the franchisee, depending on the length of the remaining term and the typical royalty payments.

Furthermore, the franchisee is also liable for any other damages suffered by Amerispec Inspection Services, as well as amounts due for printed materials, forms, advertising material, samples, supplies, products, and services provided by the company. This broad language suggests that Amerispec Inspection Services could seek compensation for a wide range of losses resulting from the termination, beyond just the unpaid royalties. Prospective franchisees should carefully consider these potential liabilities before entering into an agreement.