Which state's law governs the Amerispec Inspection Services Agreements?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
The following information applies to franchises and Franchisees subject to North Dakota statutes and regulations. Item numbers correspond to those in the main body.
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- 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.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
Based on the 2025 Amerispec Inspection Services Franchise Disclosure Document, the addendum for North Dakota indicates that the venue for any litigation arising from the franchise relationship between the franchisee and AmeriSpec will be within the state of North Dakota. This amendment is specifically for franchises and franchisees subject to North Dakota statutes and regulations.
This means that if a franchisee purchases a franchise in North Dakota, they will have legal proceedings in North Dakota. This could be beneficial for franchisees located in North Dakota, as they would not have to travel to another state for legal matters.
It is important to note that this addendum only applies to franchises sold in North Dakota. Franchisees in other states will be subject to the venue specified in the standard franchise agreement, which is not detailed in the provided FDD excerpts. Prospective franchisees should carefully review the franchise agreement and any state-specific addenda to understand the legal implications of the agreement in their specific state.