Is Amerispec Inspection Services required to approve all assignments of franchise interests?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
16.2.2.1The assignee shall enter into a written agreement with the Company, in a form satisfactory to the Company, assuming and/or guaranteeing all of the Franchisee's obligations hereunder;
16.2.2.2Any defaults under this Agreement on the part of the Franchisee have been remedied;
16.2.2.3The assignee shall demonstrate to the Company's satisfaction that it meets the Company's then-current standards for AmeriSpec franchisees; and
16.2.2.4Such other reasonable conditions as may be required by the Company in connection with the assignment have been satisfied.
16.2.3 This paragraph should not be construed to provide Franchisee a right to assign a portion of the Designated Territory to a third party who will operate independent of Franchisee.
An assignment of less than all of the beneficial interest in the Franchise or Franchised Business must operate under the terms of this Agreement, and with Franchisee, to fulfill the obligation herein.
16.2.4 If an assignment, alone or together with other previous, simultaneous, or proposed assignments, would have the effect of assigning one-half or more of the beneficial interest in the Franchise or the Franchised Business, the Company will not unreasonably withhold its consent to the assignment if all of the following conditions and requirements have been satisfied:
16.2.4.1 The assignee shall be of good moral character and reputation, shall have a good credit rating, financial capabilities and competent business qualifications reasonably acceptable to the Company.
The Franchisee shall provide the Company with the information it may reasonably require to make a determination concerning the proposed assignee;
- 16.2.4.2 In addition, the assignee or a designated representative of the assignee approved by the Company to manage the Franchised Business must satisfactorily complete the Company's training program (and pay to the Company its then-current training fee) before the assignee may assume responsibility for the operation of the Franchised Business;
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the company's approval is required for franchise assignments. Specifically, if a franchisee intends to assign their franchise, the assignee must enter into a written agreement with Amerispec Inspection Services, in a form satisfactory to them, assuming all of the franchisee's obligations. Any existing defaults under the franchise agreement must be resolved before the assignment can proceed. The assignee must also meet Amerispec Inspection Services's current standards for franchisees.
Furthermore, Amerispec Inspection Services outlines conditions related to the extent of the assignment. The company clarifies that a franchisee cannot assign a portion of their territory to a third party to operate independently. Any assignment of less than the entire beneficial interest must still operate under the original franchise agreement, with the franchisee remaining obligated to fulfill its terms.
If an assignment, alone or with other assignments, would transfer one-half or more of the beneficial interest in the franchise, Amerispec Inspection Services will not unreasonably withhold consent, provided certain conditions are met. These conditions include the assignee demonstrating good moral character, a good credit rating, sufficient financial capabilities, and competent business qualifications. The franchisee is required to provide Amerispec Inspection Services with any information needed to assess the proposed assignee. Additionally, the assignee or their designated representative must complete Amerispec Inspection Services's training program and pay the associated training fee before assuming responsibility for the franchise operation.