How are the costs of mediation split between the parties for Amerispec Inspection Services?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
- 21.1.2 Mediation.
If the Covered Dispute is not resolved informally as provided in Paragraph 21.1.1 (Informal Negotiation), the party alleging the Covered Dispute must submit the Covered Dispute for non-binding mediation.
All parties must attend and participate in the mediation.
The mediation shall be governed by the rules of the American Arbitration Association (the "AAA") before one mediator selected by the parties, and if the parties cannot agree upon the mediator, then a mediator selected by the AAA.
It is the intent of the parties that mediation shall be held not later than thirty (30) days after a written request for mediation shall have been served on the other parties.
The mediation shall be held in the metropolitan area of Company'sthen-current principal place of business (currently, Memphis, Tennessee) and shall not last more than one day, unless the parties agree otherwise.
The parties will split equally the cost of any mediation.
Any party may be represented by counsel and may, with permission of the mediator, bring persons appropriate to the proceeding.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, if a dispute arises that requires mediation, the costs associated with the mediation process will be equally split between the parties involved. This means that both Amerispec Inspection Services and the franchisee will each be responsible for paying 50% of the mediation expenses.
The mediation will be governed by the rules established by the American Arbitration Association (AAA), and a mediator will be selected by mutual agreement between the parties. If an agreement on the mediator cannot be reached, the AAA will appoint one. The mediation is intended to take place within 30 days of a written request and will be held in the metropolitan area of Amerispec Inspection Services's principal place of business, which is currently Memphis, Tennessee. Unless both parties agree otherwise, the mediation should not exceed one day.
Both parties have the right to be represented by legal counsel during the mediation, and with the mediator's permission, can bring relevant individuals to the proceeding. This arrangement ensures that neither party bears a disproportionate financial burden during the mediation process, promoting a fair resolution. If mediation fails to resolve the dispute, the matter will proceed to binding arbitration.