Does Amerispec Inspection Services have the right to control litigation that might result in liability of the franchisee?

ice. The Franchisee shall utilize its best efforts, skill, and diligence to ensure that the Franchisee and the Franchisee's employees establish and maintain high quality service to customers. At all times, the Franchisee shall conduct its business in a manner that will preserve and enhance the goodwill associated with the Names and Marks. The Franchisee will at all times be held responsible for the day-to-day management of the Franchised Business. The Franchisee agrees to comply with all reasonable requirements of the Company to measure Franchisee's customer satisfaction with the services provided by Franchisee under this Agreement, and to participate in all programs of the Company designed to review and improve the process of operating the Franchised Business including www.tellamerispec.com customer surveys.

• 9.3 Staffing. The office from which the Franchised Business is operated shall be staffed and open during regular business hours. The office telephone shall be answered by a live person during normal business hours. Minimally, the office telephone shall be answered by a machine or person at all times other than normal business hours identifying the business as an AmeriSpec Inspection business. The Company does not control, and does not have the right to control, decisions regarding the persons Franchisee hires, disciplines, or terminates as employees or agents. However, the Company may take any legal action necessary to enforce its rights under this Agreement. The Company also requires that Franchisee perform background checks and drug testing as allowed by law. These policies will not constitute the Company's representation of approval or disapproval of any prospective employees. In all cases Franchisee will remain solely responsible for decisions regarding hiring and maintaining Franchisee's employees, including determinations of whether the prospective employee meets Franchisee's hiring and performance standards or is suitable for the employment position.
• 9.4 Compliance with Rules. The Franchisee shall comply with all rules, regulations, and directives contained in this Agreement or in the confidential AmeriSpec manuals, as amended from time to time, and shall adopt and adhere to merchandising, promotion, and advertising policies of the Company. The Company specifically reserves the right to modify or change such policies, procedures, and directives including, but not by way of limitation, by changing or adding to the services to be offered by the Franchised Business. Additionally, the Franchisee shall comply with all federal, state, or local rules, regulations or directives that relate to the performance of services offered from the Franchised Business, including but not limited to those requiring licensing, registration or certification.
• 9.5 Inspection Documentation. All inspections conducted by the Franchised Business shall be documented on forms and in the manner as prescribed by the Company, and the Franchisee shall notify the Company of each inspection and source of revenue conducted by the Franchisee by providing such information with respect to each such inspection as, and in the manner, specified by the Company.
• 9.6 Qualified Inspectors.

Source: Item 23 — Receipts (FDD pages 47–172)