What law governs the construction and enforcement of the Amerispec Inspection Services Franchise Agreement?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
TCB AMERISPEC, LLC
ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF NORTH DAKOTA
The following information applies to franchises and Franchisees subject to North Dakota statutes and regulations. Item numbers correspond to those in the main body.
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- Item 17. Item 17 is amended to read as follows:
- A. Any provision of the Franchise Agreement requiring the Franchisee to sign a release in a format designated by AmeriSpec is unenforceable.
- B. The prevailing party in any enforcement action is entitled to recover all costs and expenses including attorneys' fees.
- C. Any provision of the Franchise Agreement requiring you to consent to waiver of exemplary and punitive damages is unenforceable under Section 51-19-09 of the North Dakota Franchise Investment Law.
- D. Any provision of the Franchise Agreement requiring you to consent to liquidated damages is hereby made null and void pursuant to Section 51-19-09 of the North Dakota Franchise Investment Law.
- E. Arbitration and mediation proceedings will be conducted at a site agreeable to all parties.
- F. The venue of any litigation arising out of the franchise relationship between you and AmeriSpec will be within the state of North Dakota.
- G. The North Dakota Securities Commissioner has held that requiring franchisees to consent to waiver of a trial by jury unfair, unjust or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law.
- H. Notwithstanding anything in the Disclosure Document, covenants not to compete may be subject to Section 9-08-06 of the North Dakota Century Code and unenforceable in the state of North Dakota if contrary to Section 9-08-06.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
Based on the 2025 Amerispec Inspection Services Franchise Disclosure Document, the franchise agreement's construction and enforcement are subject to specific state laws, particularly in North Dakota. An addendum addresses North Dakota statutes and regulations, modifying certain provisions of the standard franchise agreement to comply with North Dakota law.
Specifically, in North Dakota, any requirement for a franchisee to sign a release in a format designated by Amerispec Inspection Services is unenforceable. The prevailing party in any enforcement action is entitled to recover all costs and expenses, including attorneys' fees. Additionally, any provision requiring a franchisee to waive exemplary and punitive damages or to consent to liquidated damages is null and void under North Dakota Franchise Investment Law.
Furthermore, arbitration and mediation proceedings for franchises in North Dakota must be conducted at a site agreeable to all parties, and the venue for any litigation arising from the franchise relationship will be within the state of North Dakota. Covenants not to compete may also be subject to Section 9-08-06 of the North Dakota Century Code and may be unenforceable if contrary to that section. These stipulations highlight the importance of understanding state-specific addenda, as they can significantly alter the standard terms of the franchise agreement.