Can Amerispec Inspection Services enforce the agreement in the courts of the state where the Franchisee is domiciled?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
MENT FOR THE STATE OF RHODE ISLAND
This Addendum relates to franchises sold in the state of Rhode Island and is intended to comply with Rhode Island statutes and regulations. In consideration of the execution of the Franchise Agreement (the "Agreement"), TCB AMERISPEC, LLC (the "Company") and Franchisee agree to amend the Agreement as follows:
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- Section 21 of the Agreement is amended by adding the following language: Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a Franchise Agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Act."
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- In all other respects, the License Agreement will be construed and enforced according to its terms.
TCB AMERISPEC, LLC
ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF VIRGINIA
The following information applies to franchises and Franchisees subject to Virginia statues and regulations.
Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the Franchise Agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
Any provision in any of the contracts that you sign with us which provides for termination of the franchise upon the bankruptcy of the franchisee may not be enforceable under federal bankruptcy law (11 U.S.C. 101 et. seq.).
WASHINGTON ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT, FRANCHISE AGREEMENT, AND RELATED AGREEMENTS
This Addendum relates to franchises sold in the state of Washington and is intended to comply with Washington statutes and regulations. In consideration of the execution of the Franchise Agreement (the "Agreement"), TCB AMERISPEC, LLC (the "Company") and Franchisee agree to amend the Agreement as follows:
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- The state of Washington has a statute, RCW 19.100.180 which may supersede the Franchise Agreement in your relationship with the Company, including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the Franchise Agreement in your relationship with the Company, including the areas of termination and renewal of your franchise.
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- In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the Franchise Agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
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- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
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- A release or waiver of rights excluded by a franchisee will not include rights under the Washington Franchise Protection Act except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
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- Transfer fees are collectable to the extent that they reflect the Company's reasonable estimated or actual costs in effecting a transfer.
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- Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation).
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services Franchise Disclosure Document, the franchisor's ability to enforce the franchise agreement in the franchisee's home state depends on the specific state laws. For instance, an addendum for Rhode Island states that any provision restricting jurisdiction or venue to a forum outside of Rhode Island, or requiring the application of another state's laws, is void if it contradicts the Rhode Island Franchise Investment Act. Similarly, in Virginia, any termination clause that doesn't meet the state's definition of "reasonable cause" may be unenforceable under the Virginia Retail Franchising Act. Additionally, bankruptcy-related termination clauses might not be enforceable under federal bankruptcy law.
In Washington, state statutes (RCW 19.100.180) and court decisions may supersede the franchise agreement, particularly in areas of termination and renewal. The FDD also specifies that franchisees in Washington are only responsible for court costs and reasonable attorney's fees if Amerispec Inspection Services prevails in legal or arbitration proceedings. Furthermore, franchisees do not have to indemnify Amerispec Inspection Services for losses caused by the company's negligence, misconduct, or fraud.
These addenda highlight that the enforceability of certain franchise agreement terms can vary significantly based on state and federal laws. Prospective Amerispec Inspection Services franchisees should be aware of the specific regulations in their state and how these laws might affect the enforceability of the franchise agreement. It is important to consult with a legal professional to understand the full implications of these provisions in their specific circumstances.