What surviving obligations of the Agreement must an Amerispec Inspection Services franchisee comply with after termination or expiration?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
e law, such provisions shall, to the extent such are not in accordance with applicable law, be superseded by said law, and the Company shall comply with applicable law in connection with each of these matters.
19.5 Return of Manuals and Software. The Franchisee agrees, upon termination or expiration of the Franchise, to immediately return to the Company all copies of all manuals and software (including Proprietary Software) that have been provided, loaned or licensed to it by the Company, any marketing materials bearing the Names and Marks, and any material marked as property of the Company or as confidential.
19.6 Payment of Unpaid Amounts. Within 7 days after the effective date of termination or expiration of the Franchise, the Franchisee shall pay to the Company such Royalties and other charges as have or will thereafter become due hereunder and are then unpaid, plus damages for the right to receive Royalties for each year or portion thereof remaining in the original term of this Agreement, together with any other damages suffered by the Company, and all amounts due for printed materials, forms, advertising material, samples, supplies, products and services supplied by the Company.
19.7 Cancelation of Assumed Names and Telephone Numbers and Listings. Upon termination or expiration of the Franchise, the Franchisee shall expeditiously take such action as may be required (a) to properly cancel all assumed names or equivalent registrations relating to the use of the Names and Marks; and (b) to transfer or vest in the Company all interest in and rights to use all telephone and facsimile numbers, all listings, email addresses and all social media accounts whether or not bearing the Names and Marks (collectively "listings and accounts") used by the Franchisee in any manner related to the operation of, or applicable to, the Franchised Business, and the Company shall thereupon have the full and exclusive right to use such listing and accounts or to authorize the use thereof by another franchisee of the Company. The Franchisee authorizes the Company, and appoints the Company its attorney-in-fact, to direct the telephone company and all listing agencies to transfer such listings and accounts to the Company or as it may in writing direct. Any amounts owing by the Franchisee on account of such listings and accounts shall be paid immediately by the Franchisee.
19.8 Removal of Name. Immediately upon termination or expiration of the Franchise, the Franchisee shall cause all interior and exterior signs identifying the business premises as an AmeriSpec business, and AmeriSpec signs or logos appearing on any vehicles, to be removed. If the Franchisee fails to remove the sign(s), the Company shall be entitled to remove the sign(s), without prior notice to the Franchisee at the expense of the Franchisee.
19.9 De-identification with the System of Operation. After the termination or expiration of the Franchise, the Franchisee shall not indicate directly or indirectly, in any manner, that it is or ever was affiliated with the Company in any capacity except as required by law and for the limited purpose of providing employment history necessary for reasons other than obtaining benefits based directly or indirectly on the former affiliation. Thereafter, the Franchisee may not identify itself or any business as an AmeriSpec business or as a franchisee of, or as otherwise associated with, the Company, or use, in any manner or for any purpose, any of the System of Operation, concepts and methods of promotion, or Names and Marks, or any other indicia of an AmeriSpec business.
19.10 Relinquishment of Goodwill. The Franchisee shall relinquish all interest of every kind and description in the Franchise upon termination or expiration of the Franchise, including any goodwill established prior to or during the operation of the Franchise. In addition, Franchisee acknowledges and agrees the customer list of the Franchised Business is an intangible asset that exists only in connection with the Franchise and, as such, reverts to the Company upon termination or expiration of this Agreement or any renewal agreement.
19.11 Compliance with Surviving Obligations. All obligations of the Company and the Franchisee that expressly or by their nature survive the expiration or termination of the Franchise shall continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement until they are satisfied in full or by their nature expire.
Source: Item 17 — Renewal, Termination, Transfer and Dispute Resolution. (FDD pages 36–39)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services Franchise Disclosure Document, several obligations survive the termination or expiration of the franchise agreement. These obligations ensure the continued protection of the Amerispec Inspection Services brand and system.
Upon termination or expiration, the franchisee must immediately remove all signs and logos identifying the business premises or vehicles as an Amerispec Inspection Services business. The franchisee is also prohibited from indicating any past or present affiliation with Amerispec Inspection Services, except as required by law for employment history purposes. The franchisee must also relinquish all goodwill associated with the franchise, including the customer list, which reverts to Amerispec Inspection Services.
Additionally, the franchisee is obligated to return all manuals, software, marketing materials, and confidential materials to Amerispec Inspection Services. Within 7 days of termination or expiration, the franchisee must pay all outstanding royalties, charges, and damages, including those for the remaining term of the agreement. The franchisee must also cancel all assumed names and transfer all telephone numbers, listings, email addresses, and social media accounts to Amerispec Inspection Services.
Furthermore, the terms regarding the restriction on transferring the agreement to a competitor survive for 12 months after termination or expiration. This extended obligation is deemed necessary to protect Amerispec Inspection Services' interests and is a material term of the agreement. Finally, all obligations that expressly or by their nature survive the expiration or termination of the Franchise continue in full force and effect until they are fully satisfied or naturally expire.