Does Amerispec Inspection Services have the right to reduce the scope of the non-compete covenants?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.5 Reduction of Scope.
The Franchisee understands and acknowledges that the Company shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in Paragraphs 15.2 and 15.3 of this Agreement or any portion thereof, without the Franchisee's consent, effective immediately upon receipt by the Franchisee of the written notice of the reduction, and the Franchisee agrees that it shall immediately
comply with any covenant as so modified, which shall be fully enforceable notwithstanding the provisions of Paragraph 21 of this Agreement.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, Amerispec Inspection Services has the right to reduce the scope of the non-compete covenants outlined in Paragraphs 15.2 and 15.3 of the franchise agreement. This reduction can be made at Amerispec Inspection Services's sole discretion and becomes effective immediately upon the franchisee receiving written notice. The franchisee must then comply with the modified covenant.
This provision gives Amerispec Inspection Services considerable flexibility to adjust the non-compete terms. This might be beneficial in certain situations, such as if a franchisee's personal circumstances change or if market conditions warrant a narrower restriction. However, it also introduces uncertainty, as Amerispec Inspection Services could unilaterally alter the non-compete agreement during the franchise term.
Franchisees should be aware that this modification can occur without their consent and that the modified terms will be fully enforceable. This clause overrides any other provisions in the agreement that might require mutual consent for changes. Prospective franchisees should carefully consider this aspect and seek legal counsel to fully understand the implications of this clause before entering into the franchise agreement with Amerispec Inspection Services.