How is market share calculated for an Amerispec Inspection Services territory?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.1.3 For purposes of this Agreement, market share will be calculated by multiplying the number 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 Franchisee during that same period. For clarification, the 12 month period will be immediately prior to the period that the Company performs 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.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, market share is a key metric, especially for maintaining territory rights. For both new and existing territories, achieving at least a 3% market share is a condition for the franchisee to maintain protected status.
The document specifies that market share is calculated by 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 franchisee during that same period. The 12-month period used for this calculation is the one immediately preceding the company's review of the franchised business.
To illustrate, the FDD provides an example: If there are 6,500 RETs in a territory and 70% of RETs obtain home inspections, the calculation would be 6,500 RETs multiplied by 70%, resulting in 4,550 inspections. If the franchisee performed 137 inspections, the market share would be 4,550 inspections divided by 137 inspections, equaling approximately 3%. This calculation highlights the importance of understanding the local real estate market and inspection rates to achieve and maintain the required market share for an Amerispec Inspection Services franchise.