Can Amerispec Inspection Services terminate the franchise agreement during a month-to-month holdover period?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.4.2 If Franchisee fails to execute the Renewal Franchise Agreement and general release and complete the renewal process by the expiration of the then-current term and Franchisee intends to continue operating the Franchised Business, then, in the Company's sole discretion, the term shall continue on a month-to-month basis provided, however, that the Company shall have the right at any time to terminate this Agreement upon its issuance of a written Notice of Termination (the "Termination Notice") to Franchisee, which termination shall be effective immediately upon Franchisee's receipt of, or refusal to accept, such Termination Notice (or on the termination date specified in the Termination Notice, if different).
If Franchisee fails to fully and completely execute the Renewal Franchise Agreement and general release and complete the renewal process within sixty (60) days of the commencement of a monthto-month holdover, then effective immediately thereafter, the monthly Royalties payable under Paragraph 5.1 shall increase by an amount equal to 2.5% of Gross Receipts during each month that Franchisee does not renew until the Agreement is either renewed or terminated.
By accepting any increased Royalties, the Company does not waive any of its rights and remedies under this Agreement including, without limitation, the right to terminate this Agreement pursuant to its terms and all such rights and remedies shall be cumulative of every other right or remedy.
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 retains the right to terminate the franchise agreement even during a month-to-month holdover period. Specifically, if a franchisee fails to execute the Renewal Franchise Agreement and general release by the expiration of their current term, but continues to operate the business, Amerispec Inspection Services has the discretion to allow the term to continue on a month-to-month basis.
However, Amerispec Inspection Services can terminate the agreement at any time by issuing a written Notice of Termination to the franchisee. This termination becomes effective immediately upon the franchisee's receipt of, or refusal to accept, the notice, unless a different termination date is specified in the notice.
Additionally, the monthly royalties increase by 2.5% of Gross Receipts if the franchisee does not complete the renewal process within 60 days of the commencement of the month-to-month holdover. Accepting these increased royalties does not waive Amerispec Inspection Services's right to terminate the agreement.