In dispute resolution for Amerispec Inspection Services, under what circumstances is arbitration mandatory?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise agreement | Summary |
|---|---|---|
| disclaimed. Any other promises may not be enforceable. Notwithstanding the foregoing, nothing in the franchise agreement or any related agreement is intended to disclaim the representations made in the Franchise Disclosure Document. | ||
| u. Dispute resolution | Paragraph | In certain circumstances arbitration is mandatory (subject to state |
| by arbitration or mediation | 21 | law). |
| v. Choice of forum | Paragraph 21 | Subject to applicable state laws, all claims must be arbitrated or litigated in the city in which our principal place of business is located (currently, Memphis, Tennessee). |
| w. Choice of Law | Paragraph 21 Section in | Subject to applicable state laws, Tennessee law applies. |
Source: Item 17 — Renewal, Termination, Transfer and Dispute Resolution. (FDD pages 36–39)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services Franchise Disclosure Document, arbitration is mandatory in certain circumstances, although this is subject to state law. Any claims must be arbitrated or litigated in the city where Amerispec Inspection Services's principal place of business is located, which is currently Memphis, Tennessee, again subject to applicable state laws. Tennessee law applies to these proceedings, also subject to applicable state laws.
However, there are exceptions to the alternative dispute resolution process. Unless Amerispec Inspection Services provides written consent, certain disputes will not be subject to informal negotiation, nonbinding mediation, and binding arbitration. These disputes, which will instead be resolved through litigation, include those relating to the franchisee's use of the AmeriSpec Inspection Services's name and marks, disputes related to the ownership or validity of Amerispec Inspection Services's intellectual property or the enforcement of those rights, disputes involving the protection of Amerispec Inspection Services's confidential information, disputes related to the enforcement of covenants, and disputes related to the payment of sums owed to Amerispec Inspection Services.
Either party retains the right to seek temporary restraining orders and preliminary injunctive relief from a court to preserve the status quo or prevent irreparable injury pending resolution of the dispute, even when the dispute would otherwise be subject to arbitration. The party seeking such relief must simultaneously submit the dispute for arbitration on the merits. Amerispec Inspection Services has the right to obtain restraining orders or temporary or permanent injunctions to enforce provisions related to the use or protection of their name and marks, confidential information, the system of operation, or other intellectual property, as well as to enforce non-compete covenants and obligations upon termination or expiration of the agreement. Amerispec Inspection Services is not required to prove actual damages or post a bond in excess of $1,000 when seeking injunctive relief.