What is the radius outside the territory that the post-term non-compete applies to for Amerispec Inspection Services?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee covenants that for a period of 1 year after the later of the following terminating events: (i) any transfer, repurchase or termination of this Agreement; (ii) the expiration of this Agreement (if a successor franchise or renewal term is not granted); (iii) the date on which the Franchisee stops operating a competitive business (including continued operation of the Franchised Business whether or not operated under the Names and Marks) or (iv) the last date of the use of the Names and Marks and/or System of Operation, the Franchisee shall not, either directly or indirectly, for itself or through, on behalf of, or in conjunction with any other person, persons, partnership, corporation, or other entity do or engage in any act proscribed by Paragraph 15.2 of this Agreement, except that the restrictions contained in Paragraph 15.2.2 of this Agreement, shall be limited during the post term period to within the Territory described in Paragraph 3.1 of this Agreement and a 75-mile radius thereof.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services Franchise Disclosure Document, the post-term non-compete agreement restricts a franchisee from engaging in competitive activities within their designated territory and a 75-mile radius beyond it. This restriction applies for one year after the termination, transfer, repurchase, expiration of the agreement, or the last date of using the AmeriSpec Inspection Services's names, marks, and system of operation.
This means that after the franchise agreement ends, the franchisee cannot directly or indirectly compete with Amerispec Inspection Services within their former territory plus an additional 75-mile buffer zone. This restriction is in place to protect Amerispec Inspection Services's market share and brand reputation by preventing former franchisees from leveraging the knowledge and experience gained during their franchise term to unfairly compete.
The FDD also specifies that Amerispec Inspection Services has the right to reduce the scope of the non-compete agreement at its discretion by providing written notice to the franchisee. The franchisee must comply with the modified covenant immediately upon receiving such notice. This clause gives Amerispec Inspection Services flexibility to adjust the non-compete terms based on specific circumstances.
It is important for prospective franchisees to carefully consider the implications of this post-term non-compete, as it could significantly limit their business opportunities after leaving the Amerispec Inspection Services system. Franchisees should evaluate whether the geographic scope and duration of the non-compete are reasonable and align with their long-term career goals.