What is the time limitation for claims arising from the Amerispec Inspection Services agreement?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
INDIVIDUAL BASIS AND MAY NOT JOIN ANY CLAIM IT MAY HAVE WITH CLAIMS OF ANY OTHER PERSON OR ENTITY OR OTHERWISE PARTICIPATE IN A CLASS OR COLLECTIVE ACTION AGAINST THE OTHER PARTY.
- 21.6 **TWO-YEAR LIMITATION ON CLAIMS.
ANY AND ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR COVERED DISPUTES WILL BE BARRED UNLESS AN ARBITRATION OR JUDICIAL PROCEEDING IS COMMENCED IN THE PROPER FORUM WITHIN TWO YEARS FROM THE DATE ON WHICH THE VIOLATION, ACT, OMISSION, OR CONDUCT GIVING RISE TO THE CLAIM OCCURS, REGARDLESS OF WHEN THE PARTY ASSERTING THE CLAIM KNEW OR SHOULD HAVE KNOWN OF THE FACTS GIVING RISE TO THE CLAIM**, except for claims (which may be brought by any Company Related Party against any Franchisee Related Party at any time): (a) relating to third-party claims or suits brought against any Company Related Party as a result of the operation of the Franchised Business; (b) relating to the enforcement of any intellectual property rights of any Company Related Party; (c) relating to the Franchisee's non-payment or underpayment of amounts owed to a Company Related Party; (d) concerning the obligations of any Franchisee Related Party under Paragraph 14 (Confidentiality and Improvements by the Franchisee) or Paragraph 15 (Covenants) of this Agreement; (e) related to the non-compliance of any Franchisee Related Parties with any post-termination obligations under this Agreement; and (f) regarding an assignment of this Agreement or any ownership interest therein.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services Franchise Disclosure Document, there is a two-year limitation on claims. This means that any claims arising out of or relating to the Franchise Agreement must be brought within two years from the date the violation, act, omission, or conduct giving rise to the claim occurs. This limitation applies regardless of when the party asserting the claim knew or should have known about the facts that led to the claim.
However, there are exceptions to this two-year limitation. Claims relating to third-party claims against Amerispec Inspection Services, enforcement of intellectual property rights, non-payment or underpayment by the franchisee, confidentiality and improvement obligations, post-termination obligations, and assignments of the agreement are not subject to the two-year limitation. These claims can be brought at any time by Amerispec Inspection Services against the franchisee.
This clause impacts prospective franchisees by requiring them to act quickly if they believe Amerispec Inspection Services has violated the agreement. Failure to commence an arbitration or judicial proceeding within the two-year window could result in the claim being barred. Franchisees should be aware of this limitation and consult with an attorney if they believe they have a claim against Amerispec Inspection Services to ensure they do not miss the deadline.
It is important to note that this limitation may be subject to state franchise laws, such as the Maryland Franchise Registration and Disclosure Law, which provides a three-year statute of limitations for claims arising under that law. Franchisees should consult with legal counsel to understand the specific limitations period applicable to their situation, as state laws may provide additional protections or extend the limitations period.