Is arbitration binding for Amerispec Inspection Services disputes?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
- 21.1.3 Arbitration.
If the parties do not resolve the Covered Dispute after the conclusion of the mediation, such Covered Dispute must be subject to and resolved exclusively by binding arbitration. This means that all Covered Disputes that either party would otherwise have the legal right to sue for in court shall be subject to final and binding arbitration under the arbitration provisions setforth in this Paragraph 21.1.3 and not decided by a court or a jury. If there are any ambiguities in the terms or conditions of this Paragraph 21, it is the parties' intent that all ambiguities be resolved in favor of arbitration.
For the purposes of this Paragraph 21.1.3, Covered Disputes will not include disputes that an applicable federal statute provides cannot be arbitrated or cannot be subject to a pre-dispute agreement to arbitrate.
21.1.3.4 Binding Decision. The decision and award of the arbitrator will be final, conclusive, and binding on all parties regarding any claims, counterclaims, issues, or accountings presented or pled to the arbitrator, and judgment on the award, including any partial, temporary or interim award, may be entered in any court of competent jurisdiction (and such proceeding shall not itself be deemed a Covered Dispute).
21.1.3.5 Confidentiality. All evidence, testimony, records, documents and information disclosed in any arbitration hearing between the parties will be secret and confidential in all respects. Neither party will disclose any evidence, testimony, records, documents or information from any arbitration hearing to any other person or entity except as required or expressly permitted by applicable law.
21.2Exceptions to Alternative Dispute Resolution.
21.2.1 Excepted Disputes. Unless the Company consents in writing otherwise, the following Covered Disputes will not be subject to or resolved through the informal negotiation, nonbinding mediation, and binding arbitration procedures specified in Paragraph 21.1 (Alternative Dispute Resolution Procedure) and will instead be resolved through litigation: (a) disputes relating to Franchisee's use of the Name and Marks (including Lanham Act or common law claims); (b) disputes that otherwise relate to the ownership or validity of any of the Company's intellectual property or the enforcement of the Company's intellectual property rights; (c) disputes that involve protection of the Company's confidential information; (d) disputes related to the enforcement of Paragraph 15 (Covenants); and (e) disputes related to the payment of sums that any of the Franchisee Related Parties owes to any of the Franchisor Related
Parties (collectively, "Excepted Disputes").
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, disputes that are not resolved through informal negotiation or non-binding mediation must be resolved through binding arbitration. This means that if a franchisee has a disagreement with Amerispec Inspection Services that would otherwise be settled in court, it will instead be subject to a final and binding arbitration process, and not decided by a judge or jury. Any ambiguities in the arbitration terms will be resolved in favor of arbitration.
The decision made by the arbitrator is final, conclusive, and binding on all parties involved. This applies to any claims, counterclaims, issues, or accountings presented during the arbitration. The ruling can be enforced in any court with the appropriate jurisdiction. All evidence and information disclosed during the arbitration will be kept confidential, and neither party can share this information with outside parties unless required by law.
However, there are exceptions to this alternative dispute resolution process. Disputes relating to the franchisee's use of Amerispec Inspection Services's Names and Marks, intellectual property rights, confidential information, enforcement of covenants, and payment of sums owed to Amerispec Inspection Services are not subject to mediation or arbitration, and will instead be resolved through litigation. Disputes that an applicable federal statute provides cannot be arbitrated or cannot be subject to a pre-dispute agreement to arbitrate are also excluded from the arbitration process.