What does the Amerispec Inspection Services franchise agreement define regarding the franchisee's operational area?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
rms its review of the Franchised Business.
Market Share Example: 6,500 RETs x 70% = 4,550 inspections; 4,550 inspections ÷ 137 inspections performed by the Franchisee = 3% market share.
- 3.1.4 The Franchisee may perform services for a customer outside the Designated Territory only if an agent and/or customer initiates the request. The Franchisee may market and solicit customers within the Designated Territory for the license. Directing marketing or solicitation activities to agents or customers outside of Franchisee's designated territory is prohibited*.*
- 3.1.5 The Franchisee will operate the Franchised Business within the Territory at an office location set forth on Page 1 of this Agreement. The Franchisee may relocate to another office location within the Territory with the written approval of the Company before relocating. The Franchisee will request this approval by notifying the Company in writing of any planned change in the location of the Franchised Business no later than 30 days prior to any such relocation. At the Franchisee's request, the Company will provide the Franchisee a copy of a map indicating the geographic area of the Designated Territory.
- 3.1.6 The parties acknowledge and understand the Company shall have the right to operate a similar business or grant rights to other franchisees to operate a similar business, anywhere outside the Designated Territory, even if that business competes for customers located in the Designated Territory. If
Franchisee does not meet the criteria to maintain protected status, then the parties acknowledge and understand that the Company shall have the right to operate a similar business or grant rights to other franchisees to operate a similar business, anywhere inside the Designated Territory, even if that business competes for customers located in the Designated Territory. The Company (for itself and its affiliates, including without limitation its Parent) reserves any and all rights to acquire, to be acquired by, merge, affiliate with or engage in any transaction with other businesses (whether competitive or not) located anywhere. Such transactions may include (but are not limited to) arrangements involving competing businesses and brand conversations (to or from the AmeriSpec Marks and System). Such transactions are expressly permitted under this Agreement.
- 3.2 Operation as a Corporation. The Franchisee agrees that its authorization to operate as a corporation or limited liability company shall be conditioned upon the following requirements:
- 3.2.1 Its shareholders and/or members shall at all times be personally bound by the terms of this Agreement.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services FDD, the franchise agreement defines the franchisee's operational area as a "Designated Territory," which is a geographic area within which the franchisee will perform services. This territory consists of a contiguous area, determined by the Company based on total population and relative affluence, using current United States Census Bureau figures for population estimates. The specific territory is detailed in Paragraph 3.1 of the franchise agreement.
The Amerispec Inspection Services franchisee must operate the franchised business within this Designated Territory from an office location specified on Page 1 of the agreement. Relocation to another office within the territory requires written approval from Amerispec Inspection Services, with a notification of the planned change submitted in writing at least 30 days prior to the move. Franchisees can request a map indicating the geographic area of their Designated Territory from Amerispec Inspection Services.
Amerispec Inspection Services allows franchisees to perform services outside their Designated Territory only if the customer or an agent initiates the request. However, franchisees are prohibited from directing marketing or solicitation activities to agents or customers outside of their assigned territory. Amerispec Inspection Services retains the right to operate a similar business or grant rights to other franchisees outside the Designated Territory, even if it competes for customers within the franchisee's territory. If a franchisee fails to meet the criteria to maintain protected status, Amerispec Inspection Services can operate or franchise similar businesses even within the franchisee's Designated Territory. The company also reserves the right to engage in transactions with other businesses, including competitors, without restriction.