Where will arbitration and mediation proceedings be conducted regarding an Amerispec Inspection Services franchise?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
TCB AMERISPEC, LLC
ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF NORTH DAKOTA
The following information applies to franchises and Franchisees subject to North Dakota statutes and regulations. Item numbers correspond to those in the main body.
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- Item 17. Item 17 is amended to read as follows:
- A. Any provision of the Franchise Agreement requiring the Franchisee to sign a release in a format designated by AmeriSpec is unenforceable.
- B. The prevailing party in any enforcement action is entitled to recover all costs and expenses including attorneys' fees.
- C. Any provision of the Franchise Agreement requiring you to consent to waiver of exemplary and punitive damages is unenforceable under Section 51-19-09 of the North Dakota Franchise Investment Law.
- D. Any provision of the Franchise Agreement requiring you to consent to liquidated damages is hereby made null and void pursuant to Section 51-19-09 of the North Dakota Franchise Investment Law.
- E. Arbitration and mediation proceedings will be conducted at a site agreeable to all parties.
- F. The venue of any litigation arising out of the franchise relationship between you and AmeriSpec will be within the state of North Dakota.
- G. The North Dakota Securities Commissioner has held that requiring franchisees to consent to waiver of a trial by jury unfair, unjust or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law.
- H. Notwithstanding anything in the Disclosure Document, covenants not to compete may be subject to Section 9-08-06 of the North Dakota Century Code and unenforceable in the state of North Dakota if contrary to Section 9-08-06.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the location of arbitration and mediation proceedings depends on the state where the franchise is located. For franchises subject to North Dakota statutes and regulations, arbitration and mediation proceedings will be conducted at a site agreeable to all parties.
This stipulation is part of an addendum to the Franchise Disclosure Document specifically for the state of North Dakota, addressing amendments to Item 17 of the main agreement. This addendum ensures compliance with North Dakota's Franchise Investment Law, which includes provisions protecting franchisees from certain requirements such as waiving exemplary or punitive damages and consenting to liquidated damages.
For prospective Amerispec Inspection Services franchisees in North Dakota, this means that any disputes requiring arbitration or mediation will be resolved at a location mutually agreed upon, providing a degree of flexibility and potentially reducing travel costs and inconvenience. Franchisees outside of North Dakota should consult their specific franchise agreement and any state-specific addenda to understand where arbitration and mediation would occur, as it may differ from the North Dakota provision.