factual

How is market share calculated for an Amerispec Inspection Services franchise?

Amerispec_Inspection_Services Franchise · 2025 FDD

Answer from 2025 FDD Document

Market share will be calculated by multiplying the number of RETs in the Territory for a 12-month period by the average percentage of RETs that obtain home inspections as determined by ASHI (American Society of Home Inspectors) and dividing that number by the number of home inspections performed by you during that same period.

Source: Item 12 — Territory (FDD pages 31–33)

What This Means (2025 FDD)

According to the 2025 Amerispec Inspection Services Franchise Disclosure Document, market share is a key performance indicator for franchisees. For both new and existing franchises, maintaining at least a 3% market share is a condition for the territory to remain unchanged, provided the franchisee complies with the Franchise Agreement.

The FDD specifies the calculation method for market share. It involves multiplying the number of Real Estate Transactions (RETs) in the territory for a 12-month period by the average percentage of RETs that obtain home inspections, as determined by the American Society of Home Inspectors (ASHI). This result is then divided by the number of home inspections performed by the Amerispec Inspection Services franchisee during that same 12-month period.

This calculation relies on data from ASHI to estimate the percentage of real estate transactions that typically involve a home inspection. The franchisee's own inspection numbers are then compared against this estimated total to determine their market share. Prospective franchisees should understand how ASHI data is obtained and how frequently it is updated, as this data directly impacts the market share calculation and the assessment of their performance. It is also important to note that failure to meet the market share performance criteria can lead to a reduction or restructuring of the franchisee's territory.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.