Where does Amerispec Inspection Services discuss termination?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
18. PRE-TERMINATION OPTIONS OF THE COMPANY
- 18.1 Company's Pre-Termination Rights. Prior to the termination of this Agreement, if the Franchisee fails to pay any amounts owed to the Company or its affiliates, or fails to comply with any term of this Agreement, then in addition to any right the Company may have to terminate this Agreement or to bring a claim for damages, the Company shall also have the option:
- 18.1.1 To cease providing AmeriSpec® Reports to the Franchisee;
- 18.1.2 To suspend all services provided to the Franchisee under this Agreement or otherwise, including but not limited to training, marketing assistance and the sale of marketing materials and other products and supplies;
- 18.1.3 Reduce and/or modify the size of Franchisee's Designated Territory or eliminate the "protected" status of the Designated Territory. If Franchisee fails to meet any of the requirements stated
in Paragraph 3.1.1 and Paragraph 3.1.2, Company may reduce and/or modify the size of Franchisee's Designated Territory or eliminate the "protected" status of the Designated Territory; and
- 18.1.4 To remove access to the System of Operation licensed by the Company.
- 18.2 Non-Waiver of Claims. The Company's actions as outlined in this Paragraph 18 may continue until the Franchisee has brought its accounts current, cured any default, and complied with the Company's requirements, and the Company has acknowledged the same in writing. The taking of any of the actions permitted in this Paragraph 18 shall not suspend or release the Franchisee from any obligation that would otherwise be owed to the Company or its affiliates under the terms of this Agreement or otherwise.
19. TERMINATION
[Item 23: Receipts]
- 19.5 Return of Manuals and Software.
The Franchisee agrees, upon termination or expiration of the Franchise, to immediately return to the Company all copies of all manuals and software (including Proprietary Software) that have been provided, loaned or licensed to it by the Company, any marketing materials bearing the Names and Marks, and any material marked as property of the Company or as confidential.
- 19.6 Payment of Unpaid Amounts.
Within 7 days after the effective date of termination or expiration of the Franchise, the Franchisee shall pay to the Company such Royalties and other charges as have or will thereafter become due hereunder and are then unpaid, plus damages for the right to receive Royalties for each year or portion thereof remaining in the original term of this Agreement, together with any other damages suffered by the Company, and all amounts due for printed materials, forms, advertising material, samples, supplies, products and services supplied by the Company.
- 19.7 Cancelation of Assumed Names and Telephone Numbers and Listings.
Upon termination or expiration of the Franchise, the Franchisee shall expeditiously take such action as may be required (a) to properly cancel all assumed names or equivalent registrations relating to the use of the Names and Marks; and (b) to transfer or vest in the Company all interest in and rights to use all telephone and facsimile numbers, all listings, email addresses and all social media accounts whether or not bearing the Names and Marks (collectively "listings and accounts") used by the Franchisee in any manner related to the operation of, or applicable to, the Franchised Business, and the Company shall thereupon have the full and exclusive right to use such listing and accounts or to authorize the use thereof by another franchisee of the Company.
The Franchisee authorizes the Company, and appoints the Company its attorney-in-fact, to direct the telephone company and all listing agencies to transfer such listings and accounts to the Company or as it may in writing direct.
Any amounts owing by the Franchisee on account of such listings and accounts shall be paid immediately by the Franchisee.
- 19.8 Removal of Name.
Immediately upon termination or expiration of the Franchise, the Franchisee shall cause all interior and exterior signs identifying the business premises as an AmeriSpec business, and AmeriSpec signs or logos appearing on any vehicles, to be removed.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services' 2025 Franchise Disclosure Document, Item 23 discusses both pre-termination options and termination. Specifically, Paragraph 18 outlines Amerispec Inspection Services' pre-termination rights, detailing actions the company may take if a franchisee fails to meet financial obligations or comply with the agreement terms. These actions include ceasing to provide reports, suspending services, modifying the territory, or removing access to the system of operation.
Paragraph 18 emphasizes that these pre-termination actions do not waive Amerispec Inspection Services' right to pursue further claims against the franchisee. The company can continue these actions until the franchisee rectifies the issues and receives written acknowledgment from Amerispec Inspection Services.
Paragraph 19 addresses termination, including the franchisee's obligations upon termination or expiration of the franchise agreement. These obligations include returning manuals and software, paying unpaid amounts, canceling assumed names and telephone numbers, and removing the Amerispec Inspection Services name from the premises. The franchisee must also transfer all rights to telephone and facsimile numbers, listings, email addresses, and social media accounts to Amerispec Inspection Services.
These provisions are typical in franchise agreements, ensuring that Amerispec Inspection Services maintains control over its brand and system while protecting its interests in case of franchisee default or termination. Prospective franchisees should carefully review these sections to understand their rights and obligations both before and after termination.