What state's law applies to the Amerispec Inspection Services franchise agreement?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
sidered a waiver of any right conferred upon the Franchisor or upon the Franchisee by Article 33 of the General Business law of the state of New York."
IN WITNESS WHEREOF, the parties hereto have duly executed, sealed, and delivered this Addendum to the Agreement on the same day and year that the Agreement has been executed.
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.
-
- 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.
ADDENDUM TO FRANCHISE AGREEMENT FOR THE STATE OF NORTH DAKOTA
This Addendum relates to franchises sold in the state of North Dakota and is intended to comply with North Dakota statutes and regulations. In consideration of the execution of the Franchise Agreement (the "Agreement"), TCB AMERISPEC, LLC (the "Company") and Franchisee agree to amend the Agreement as follows:
Source: Item 17 — Renewal, Termination, Transfer and Dispute Resolution. (FDD pages 36–39)
What This Means (2025 FDD)
Based on the 2025 Amerispec Inspection Services Franchise Disclosure Document, the franchise agreement's governing law depends on the franchisee's location. For franchisees in North Dakota, an addendum modifies the standard agreement to comply with North Dakota statutes, particularly concerning releases, attorney's fees, damages, arbitration, venue, jury trial waivers, and non-compete covenants. Similarly, for franchisees in California, the FDD includes an addendum to comply with the California Franchise Investment Law, emphasizing the delivery of all proposed agreements with the disclosure document. These addenda highlight that the franchise agreement is not universally applied but is adapted to respect state-specific franchise laws.
This approach is common in franchising, as franchise laws vary significantly from state to state. Amerispec Inspection Services addresses this by providing state-specific addenda that modify the standard franchise agreement to ensure compliance with local regulations. This ensures that franchisees' rights are protected under the laws of their respective states and that Amerispec Inspection Services operates within the legal framework of each state where it offers franchises.
For a prospective Amerispec Inspection Services franchisee, this means carefully reviewing any state-specific addenda to understand how the franchise agreement is modified in their state. It is also advisable to consult with a franchise attorney to ensure full comprehension of their rights and obligations under both the standard agreement and any state-specific addenda. This due diligence is crucial for a successful and legally sound franchise operation.