What paragraph outlines the Alternative Dispute Resolution Procedure for Amerispec Inspection Services?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
21. DISPUTE RESOLUTION.
- 21.1 Alternative Dispute Resolution Procedure.
Except as otherwise provided in Paragraph 21.2 (Excepted Disputes), any claim, dispute, suit, action, controversy, or proceeding of any type whatsoever between (i) the Franchisee, its affiliates, or its owners, and/or the Franchisee's, its affiliates', or its owners' officers, directors, and employees (the "Franchisee Related Parties") and (ii) the Company, its affiliates, and/or its or its affiliates' officers, directors, owners, and employees (the "Company Related Parties") relating to (a) this Agreement, (b) the relationship of any of the Company Related Parties with any of the Franchisee Related Parties, or (c) the Franchised Business, including disputes related to compliance with franchise, labor, or employment laws (collectively, (a) through (c), the "Covered Disputes") must be resolved in accordance with the alternative dispute resolution procedures described in this Paragraph 21.1.
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.
- 21.1.1 Informal Negotiation.
To initiate the dispute resolution process, the party alleging a Covered Dispute must provide the other party with written notice setting forth the alleged Covered Dispute in detail and requesting a meeting (the "Dispute Notice").
Each Covered Dispute must be discussed in a face-to-face meeting or, upon agreement of the parties, in a video or telephone conference call held within thirty (30) days after such Dispute Notice is provided to the other party.
Unless 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.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, Paragraph 21.1 outlines the Alternative Dispute Resolution Procedure. This procedure applies to any claim, dispute, suit, action, controversy, or proceeding between the franchisee and Amerispec Inspection Services relating to the franchise agreement, the relationship between the parties, or the franchised business. This includes disputes related to compliance with franchise, labor, or employment laws. The franchisee and Amerispec Inspection Services are considered third-party beneficiaries of the agreement and are included in the term "parties" in this paragraph.
The first step in the dispute resolution process is informal negotiation. The party alleging a dispute must provide written notice to the other party detailing the dispute and requesting a meeting. A face-to-face meeting, or a video or telephone conference call if agreed upon, must be held within 30 days after the notice is provided. The party initiating the process must wait at least 30 days after delivering the dispute notice before submitting the dispute to mediation, unless otherwise agreed.
If the dispute is not resolved informally, the party alleging the dispute must submit it for non-binding mediation. All parties are required to attend and participate in the mediation. If mediation is unsuccessful, the dispute may proceed to binding arbitration as detailed in subsequent paragraphs. However, certain disputes, such as those relating to the use of Amerispec Inspection Services's Name and Marks, intellectual property, confidential information, or the enforcement of covenants, are excepted from this alternative dispute resolution procedure and will instead be resolved through litigation.