Does the Federal Arbitration Act govern any part of the Amerispec Inspection Services agreement?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
at the Company selects in the metropolitan area in which its principal place of business is then located (currently, Memphis, Tennessee). The arbitrator shall have no authority to select a different hearing locale. All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.).
21.1.3.2 Scope. The arbitrator (and not a court) shall decide all issues in any Covered Dispute, including issues regarding the non-availability of class arbitration, timeliness, arbitration procedures, statute of limitations, and all other issues regarding the application, interpretation, enforceability, coverage, and implementation of this Paragraph 21.1.3, including whether the parties have entered into this Agreement. In accordance with Paragraph 21.5 (Mutual Waiver of Class or Collective Actions), the arbitrator shall have no authority to consider or resolve any claim or issue in a Covered Dispute on any basis other than on an individual basis and may not consolidate or join one or more Covered Disputes pertaining to Franchisee or another Franchisee Related Party with any other dispute(s).
21.1.3.3 Relief. The arbitrator shall have the power and authority to award any remedy or relief available under applicable law, including money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and attorneys' fees and costs (in accordance with Paragraph 20.3 (Right to Interest and Costs)), except the arbitrator may not (a) declare any Name and Mark generic or otherwise invalid or (b) award any special, consequential, exemplary, or punitive damages against either party, except as expressly provided in Paragraph 21.4 (Mutual Waiver of Punitive Damages).
21.1.3.4 Binding Decision. The decision and award of the arbitrator will be final, conclusive, and binding on all parties regarding any claims, counterclaims, issues, or accountings presented or pled to the arbitrator, and judgment on the award, including any partial, temporary or interim award, may be entered in any court of competent jurisdiction (and such proceeding shall not itself be deemed a Covered Dispute).
21.1.3.5 Confidentiality. All evidence, testimony, records, documents and information disclosed in any arbitration hearing between the parties will be secret and confidential in all respects.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services Franchise Disclosure Document, the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.) governs all matters relating to arbitration. This means that the procedures and enforcement of any arbitration proceedings between Amerispec Inspection Services and the franchisee will be subject to federal law.
The FDD specifies that either party can initiate arbitration by sending a written demand to the other party. The arbitration will be conducted by a single arbitrator, following the Commercial Arbitration Rules of the AAA (American Arbitration Association), except as otherwise provided in the franchise agreement. All arbitration proceedings will take place at the AAA's offices or other suitable locations selected by Amerispec Inspection Services in the metropolitan area of its principal business, which is currently Memphis, Tennessee. The arbitrator does not have the authority to select a different hearing location.
The arbitrator, rather than a court, holds the authority to resolve all issues in any covered dispute. This includes, but is not limited to, issues regarding the non-availability of class arbitration, timeliness, arbitration procedures, statute of limitations, and the interpretation, enforceability, and implementation of the arbitration agreement. The arbitrator can award any remedy or relief available under applicable law, including monetary damages, specific performance, injunctive relief, and attorneys' fees and costs, but cannot declare any Name and Mark generic or award special, consequential, exemplary, or punitive damages against either party, except as expressly provided in the agreement.