How many days does an Amerispec Inspection Services franchisee have to cure a default after receiving notice?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
re assigned to or for the benefit of any creditor, or the Franchisee admits its inability to pay its debts as they come due;
19.2.6 The Company and the Franchisee agree in writing to terminate the Franchise;
19.2.7 The Franchisee, after curing any failure for which the Franchisee is given 30 days' notice and an opportunity to cure, engages in the same noncompliance, whether or not such noncompliance is corrected after notice;
19.2.8 The Franchisee makes an unauthorized assignment of the Franchise Agreement, the Franchised Business, or the Franchise;
19.2.9 The Franchisee makes any material misrepresentations relating to the acquisition of the Franchise;
19.2.10 The Franchisee engages in conduct which reflects materially and unfavorably upon the operation and reputation of the Franchised Business or the AmeriSpec franchise system;
19.2.11 The Franchisee fails, for a period of 10 days after notification of noncompliance, to comply with any federal, state, or local law or regulation applicable to the operation of the Franchise;
19.2.12 A levy of execution has been made upon the license granted under the Franchise Agreement and it is not discharged within 5 days of such levy;
Source: Item 17 — Renewal, Termination, Transfer and Dispute Resolution. (FDD pages 36–39)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, a franchisee has varying cure periods depending on the nature of the default. For some instances, the franchisee has 30 days to cure a failure after receiving notice. However, this 30-day cure period does not apply to all defaults.
Specifically, if a franchisee fails to comply with any federal, state, or local law or regulation, they only have 10 days after notification to correct the noncompliance. Additionally, if a levy of execution has been made upon the franchise license, the franchisee has only 5 days to discharge it. Similarly, a franchisee has just 5 days after receiving notice to pay any overdue royalties, advertising contributions, or other amounts owed to Amerispec Inspection Services or its affiliates.
Furthermore, if the franchisee fails to submit required financial statements, sales information, or supporting records, they have 30 days after the due date to comply. However, if the franchisee submits two or more reports within a 12-month period that understate gross receipts by 3% or more or materially distort other information, this cure period may not apply, and other penalties could be imposed.