AmeriSpec is a national franchisor of residential and commercial property inspection services. In 1995, Arnold McLaurin entered into an agreement to operate an AmeriSpec franchise for 10 years, which was renewed in 2005. The agreement contained a noncompete clause forbidding McLaurin from operating an inspection service for one year after the expiration of the agreement. From 1995 until February 22, 2018, McLaurin used the AmeriSpec’s names and marks, its proprietary software—including training materials—email accounts, website, and, for all intents and purposes, operated as an AmeriSpec franchise. The franchise agreement was supposed to expire on November 20, 2015, but the parties continued to operate as if the contract remained in full force and effect. McLaurin stated that after the expiration of the agreement, he “continued to remit services fees to AmeriSpec (which AmeriSpec continued to accept) and [he] continued to use the AmeriSpec mark in connection with [his] activities … AmeriSpec knew that [he] continued to use the mark and expressed no objection.”

On February 23, 2018, McLaurin opened a residential and commercial property inspection business called “American Property Inspection Services.” McLaurin advertised on his website for American Property Inspection Services that he had been in the property inspection business “for twenty two years,” and that McLaurin “started his property inspection business by purchasing a national franchise brand.” Amerispec sued McLaurin for breach of contract, arguing that he was violating the noncompete provision of the franchise agreement. McLaurin responded that the agreement expired three years prior, and thus he was clear of the one-year noncompete provision.

Did the franchise agreement truly expire in 2015, or did it effectively continue until 2018? How did the court rule?