Are Franchisee Related Parties considered third-party beneficiaries of the Amerispec Inspection Services franchise agreement regarding dispute resolution?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee Related Parties and any Company Related Parties shall all be considered third-party beneficiaries of this Agreement and shall be included in the term "parties" or "party" in this Paragraph 21.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, Franchisee Related Parties are considered third-party beneficiaries to the franchise agreement with respect to dispute resolution. The FDD specifies that any claim, dispute, suit, action, controversy, or proceeding between the Franchisee Related Parties and the Company Related Parties relating to the agreement, the relationship of the parties, or the Franchised Business must be resolved through alternative dispute resolution procedures.
The Franchisee Related Parties include the franchisee, its affiliates, its owners, and their respective officers, directors, and employees. The Company Related Parties include Amerispec Inspection Services, its affiliates, and their respective officers, directors, owners, and employees. The disputes covered include those related to the franchise agreement, the relationship between the parties, and the franchised business, including compliance with franchise, labor, or employment laws.
This means that Franchisee Related Parties have the right to enforce the dispute resolution provisions outlined in the franchise agreement. This is a benefit to the franchisee and related parties, as it ensures they have access to the dispute resolution process if a conflict arises. The alternative dispute resolution procedures include informal negotiation and mediation, which are designed to resolve disputes efficiently and cost-effectively.