Does the waiver of liability in the Amerispec Inspection Services agreement extend to the Company's affiliates?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.1 Company's Pre-Termination Rights. Prior to the termination of this Agreement, if the Franchisee fails to pay any amounts owed to the Company or its affiliates, or fails to comply with any term of this Agreement, then in addition to any right the Company may have to terminate this Agreement or to bring a claim for damages, the Company shall also have the option:
- 18.1.1 To cease providing AmeriSpec® Reports to the Franchisee;
- 18.1.2 To suspend all services provided to the Franchisee under this Agreement or otherwise, including but not limited to training, marketing assistance and the sale of marketing materials and other products and supplies;
- 18.1.3 Reduce and/or modify the size of Franchisee's Designated Territory or eliminate the "protected" status of the Designated Territory. If Franchisee fails to meet any of the requirements stated
in Paragraph 3.1.1 and Paragraph 3.1.2, Company may reduce and/or modify the size of Franchisee's Designated Territory or eliminate the "protected" status of the Designated Territory; and
- 18.1.4 To remove access to the System of Operation licensed by the Company.
- 18.2 Non-Waiver of Claims. The Company's actions as outlined in this Paragraph 18 may continue until the Franchisee has brought its accounts current, cured any default, and complied with the Company's requirements, and the Company has acknowledged the same in writing. The taking of any of the actions permitted in this Paragraph 18 shall not suspend or release the Franchisee from any obligation that would otherwise be owed to the Company or its affiliates under the terms of this Agreement or otherwise.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
Based on the 2025 Amerispec Inspection Services Franchise Disclosure Document, the company has the right to take action if the franchisee fails to pay amounts owed to the company or its affiliates. Specifically, prior to termination of the agreement, if a franchisee fails to pay any amounts owed to Amerispec Inspection Services or its affiliates, the company has the option to take certain actions.
These actions include ceasing to provide AmeriSpec Reports to the franchisee, suspending services such as training and marketing assistance, modifying the franchisee's territory, or removing access to the System of Operation.
Importantly, the FDD states that taking any of these actions does not waive any obligations the franchisee owes to Amerispec Inspection Services or its affiliates. This means that even if Amerispec Inspection Services takes action such as suspending services, the franchisee is still responsible for fulfilling their financial and other obligations to the company and its affiliates under the franchise agreement.