What events trigger the start of the post-term non-compete period for an Amerispec Inspection Services franchise?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the post-term non-compete period begins after the occurrence of certain terminating events. This non-compete agreement restricts the franchisee from engaging in competitive business activities for a period of one year.
The triggering events include: any transfer, repurchase, or termination of the franchise agreement; the expiration of the agreement if a successor franchise or renewal is not granted; the date the franchisee stops operating a competitive business (this includes operating the franchised business, regardless of whether it is under the Amerispec Inspection Services's brand); or the last date of the use of the Names and Marks and/or System of Operation.
It is important to note that the restrictions outlined in paragraph 15.2.2 of the franchise agreement are limited to the territory described in paragraph 3.1 of the agreement and a 75-mile radius thereof during the post-term period. Amerispec Inspection Services also retains the right to reduce the scope of any covenant set forth in paragraphs 15.2 and 15.3 of the agreement, effective immediately upon written notice to the franchisee. The franchisee must comply with any covenant as modified.