For Amerispec Inspection Services, what is the definition of 'Excepted Disputes' in the context of alternative dispute resolution?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
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, 'Excepted Disputes' are specific types of disagreements that will not be subject to the standard alternative dispute resolution procedures like informal negotiation, nonbinding mediation, and binding arbitration. Instead, these disputes will be resolved through litigation, unless Amerispec Inspection Services agrees otherwise in writing.
These 'Excepted Disputes' include disagreements relating to the franchisee's use of the Amerispec Inspection Services's Names and Marks, including claims related to the Lanham Act or common law. They also encompass disputes concerning the ownership or validity of Amerispec Inspection Services's intellectual property, or the enforcement of their intellectual property rights. Disputes involving the protection of Amerispec Inspection Services's confidential information and those related to the enforcement of non-compete covenants are also considered 'Excepted Disputes'.
Finally, any disputes related to the payment of sums that the franchisee owes to Amerispec Inspection Services are included in this category. This means that Amerispec Inspection Services reserves the right to pursue litigation for these specific types of disputes, allowing them to bypass the alternative dispute resolution methods typically required for other disagreements. This is a common practice in franchising, as franchisors often want to maintain direct control over disputes involving intellectual property and brand standards.