What are the franchisee's obligations upon termination or non-renewal of the Amerispec Inspection Services franchise agreement?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
If the Franchisee fails to remove the sign(s), the Company shall be entitled to remove the sign(s), without prior notice to the Franchisee at the expense of the Franchisee.
- 19.9 De-identification with the System of Operation.
After the termination or expiration of the Franchise, the Franchisee shall not indicate directly or indirectly, in any manner, that it is or ever was affiliated with the Company in any capacity except as required by law and for the limited purpose of providing employment history necessary for reasons other than obtaining benefits based directly or indirectly on the former affiliation.
Thereafter, the Franchisee may not identify itself or any business as an AmeriSpec business or as a franchisee of, or as otherwise associated with, the Company, or use, in any manner or for any purpose, any of the System of Operation, concepts and methods of promotion, or Names and Marks, or any other indicia of an AmeriSpec business.
- 19.10 Relinquishment of Goodwill. The Franchisee shall relinquish all interest of every kind and description in the Franchise upon termination or expiration of the Franchise, including any goodwill established prior to or during the operation of the Franchise. In addition, Franchisee acknowledges and agrees the customer list of the Franchised Business is an intangible asset that exists only in connection with the Franchise and, as such, reverts to the Company upon termination or expiration of this Agreement or any renewal agreement.
- 19.11 Compliance with Surviving Obligations. All obligations of the Company and the Franchisee that expressly or by their nature survive the expiration or termination of the Franchise shall continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement until they are satisfied in full or by their nature expire.
Source: Item 17 — Renewal, Termination, Transfer and Dispute Resolution. (FDD pages 36–39)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services FDD, upon termination or expiration of the franchise agreement, the franchisee has several obligations. The franchisee must immediately remove all interior and exterior signs identifying the business premises as an AmeriSpec Inspection Services business, including signs or logos on vehicles. If the franchisee fails to do so, Amerispec Inspection Services has the right to remove the signs at the franchisee's expense.
Furthermore, after termination or expiration, the franchisee cannot directly or indirectly indicate any affiliation with Amerispec Inspection Services, except as required by law for employment history purposes. The franchisee must relinquish all interest in the franchise, including any goodwill established, and acknowledges that the customer list reverts to Amerispec Inspection Services. All obligations that survive the termination or expiration of the franchise agreement remain in effect until fully satisfied.
The franchisee is also required to return all copies of manuals and software, including proprietary software, marketing materials bearing the brand's names and marks, and any confidential materials. Within 7 days of termination or expiration, the franchisee must pay all outstanding royalties and charges, plus damages for the right to receive royalties for the remaining term of the agreement, any other damages suffered by Amerispec Inspection Services, and all amounts due for materials, supplies, products, and services provided by the company.
Finally, the franchisee must take action to cancel all assumed names registrations related to the use of the brand's names and marks. They also need to transfer all rights to telephone and facsimile numbers, listings, email addresses, and social media accounts used in connection with the franchised business to Amerispec Inspection Services. The company is authorized to act as the franchisee's attorney-in-fact to direct the transfer of these listings and accounts. Any outstanding amounts owed for these listings and accounts must be paid immediately by the franchisee.