What rules govern the mediation process for Amerispec Inspection Services?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 FDD, Amerispec Inspection Services requires disputes not resolved informally to be submitted for non-binding mediation. All parties involved must attend and participate in the mediation process. The rules of the American Arbitration Association (AAA) govern the mediation, with a mediator selected by the parties or, if they cannot agree, by the AAA.
The FDD specifies that the mediation should occur within 30 days of a written request and take place in the metropolitan area of Amerispec Inspection Services' principal place of business, which is currently Memphis, Tennessee. Unless the parties agree otherwise, the mediation is limited to one day. The costs associated with the mediation are to be split equally between the parties involved.
Each party has the right to be represented by counsel and, with the mediator's permission, bring relevant individuals to the proceeding. If mediation does not resolve the dispute, it must be settled through binding arbitration, meaning disputes will be resolved through arbitration rather than court proceedings. This clause indicates that Amerispec Inspection Services aims to resolve disputes efficiently through mediation and arbitration, potentially saving franchisees time and legal expenses.