How does Amerispec Inspection Services issue a Termination Notice during a month-to-month holdover?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.4.2 If Franchisee fails to execute the Renewal Franchise Agreement and general release and complete the renewal process by the expiration of the then-current term and Franchisee intends to continue operating the Franchised Business, then, in the Company's sole discretion, the term shall continue on a month-to-month basis provided, however, that the Company shall have the right at any time to terminate this Agreement upon its issuance of a written Notice of Termination (the "Termination Notice") to Franchisee, which termination shall be effective immediately upon Franchisee's receipt of, or refusal to accept, such Termination Notice (or on the termination date specified in the Termination Notice, if different).
If Franchisee fails to fully and completely execute the Renewal Franchise Agreement and general release and complete the renewal process within sixty (60) days of the commencement of a monthto-month holdover, then effective immediately thereafter, the monthly Royalties payable under Paragraph 5.1 shall increase by an amount equal to 2.5% of Gross Receipts during each month that Franchisee does not renew until the Agreement is either renewed or terminated.
By accepting any increased Royalties, the Company does not waive any of its rights and remedies under this Agreement including, without limitation, the right to terminate this Agreement pursuant to its terms and all such rights and remedies shall be cumulative of every other right or remedy.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services Franchise Disclosure Document, if a franchisee continues to operate the franchised business after the expiration of the current term but fails to execute the Renewal Franchise Agreement, the term will continue on a month-to-month basis at the company's discretion. During this month-to-month holdover, Amerispec Inspection Services retains the right to terminate the agreement at any time.
To terminate the agreement during a month-to-month holdover, Amerispec Inspection Services must issue a written Notice of Termination to the franchisee. The termination becomes effective immediately upon the franchisee's receipt of, or refusal to accept, the Termination Notice. Alternatively, the termination can be effective on a specific termination date if one is specified in the Termination Notice.
It is important to note that if the franchisee does not fully execute the renewal agreement within 60 days of the start of the month-to-month holdover, the monthly royalties will increase by 2.5% of gross receipts until the agreement is either renewed or terminated. However, accepting these increased royalties does not waive Amerispec Inspection Services's right to terminate the agreement.