Is mediation binding for Amerispec Inspection Services disputes?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
ess otherwise agreed by the parties, the party initiating the process must wait at least thirty (30) days after the Dispute Notice has been delivered to the other party before submitting the dispute to mediation.
- 21.1.2 Mediation. If the Covered Dispute is not resolved informally as provided in Paragraph 21.1.1 (Informal Negotiation), the party alleging the Covered Dispute must submit the Covered Dispute for non-binding mediation. All parties must attend and participate in the mediation. The mediation shall be governed by the rules of the American Arbitration Association (the "AAA") before one mediator selected by the parties, and if the parties cannot agree upon the mediator, then a mediator selected by the AAA. It is the intent of the parties that mediation shall be held not later than thirty (30) days after a written request for mediation shall have been served on the other parties. The mediation shall be held in the metropolitan area of Company'sthen-current principal place of business (currently, Memphis, Tennessee) and shall not last more than one day, unless the parties agree otherwise. The parties will split equally the cost of any mediation. Any party may be represented by counsel and may, with permission of the mediator, bring persons appropriate to the proceeding.
- 21.1.3 Arbitration. If the parties do not resolve the Covered Dispute after the conclusion of the mediation, such Covered Dispute must be subject to and resolved exclusively by binding arbitration. This means that all Covered Disputes that either party would otherwise have the legal right to sue for in court shall be subject to final and binding arbitration under the arbitration provisions setforth in this Paragraph 21.1.3 and not decided by a court or a jury. If there are any ambiguities in the terms or conditions of this Paragraph 21, it is the parties' intent that all ambiguities be resolved in favor of arbitration. For the purposes of this Paragraph 21.1.3, Covered Disputes will not include disputes that an applicable federal statute provides cannot be arbitrated or cannot be subject to a pre-dispute agreement to arbitrate.
21.1.3.1Arbitration Procedure. Either party may commence arbitration by sending written demand for arbitration to the other party. The arbitration proceeding shall be conducted by one arbitrator and, except as otherwise provided in this Paragraph 21, shall be conducted in accordance with the then-current Commercial Arbitration Rules of the AAA. All arbitration proceedings will be held at the offices of the AAA or other suitable offices that 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.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, mediation is not binding. If a dispute arises, the franchisee must first attempt to resolve it through informal negotiation. If that fails, the dispute must be submitted for non-binding mediation, following the rules of the American Arbitration Association. All parties are required to attend and participate in the mediation, which should occur within 30 days of a written request. The mediation will be held in the metropolitan area of Amerispec Inspection Services's principal place of business, which is currently Memphis, Tennessee, and is intended to last no more than one day unless the parties agree otherwise. The costs of mediation will be split equally between the parties.
If mediation does not resolve the dispute, the matter will then proceed to binding arbitration. This means that any claims that either party would otherwise have the right to sue for in court will be subject to final and binding arbitration, and not decided by a court or a jury.
Certain disputes are excepted from the alternative dispute resolution procedures, including those relating to the franchisee's use of Amerispec Inspection Services's names and marks, disputes relating to intellectual property, disputes involving confidential information, disputes related to covenants, and disputes related to the payment of sums owed to Amerispec Inspection Services. These excepted disputes will be resolved through litigation unless Amerispec Inspection Services consents otherwise in writing.