What is the venue for any litigation arising out of the franchise relationship between a franchisee and Amerispec Inspection Services?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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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)
According to Amerispec Inspection Services' 2025 Franchise Disclosure Document, the venue for any litigation arising out of the franchise relationship between a franchisee and Amerispec Inspection Services will be within the state of North Dakota, but only if the franchisee is subject to North Dakota statutes and regulations. This is specified in the addendum to the Franchise Disclosure Document for the State of North Dakota.
This stipulation is important for prospective franchisees in North Dakota as it ensures that any legal disputes with Amerispec Inspection Services will be resolved within the state, potentially offering more convenience and familiarity with local laws. It is common for franchise agreements to specify a particular venue for litigation, which is often the location of the franchisor's headquarters. However, this addendum modifies that standard arrangement for franchisees in North Dakota.
For prospective franchisees outside of North Dakota, the FDD excerpts provided do not specify the venue for litigation. Therefore, it is essential for potential franchisees to carefully review Item 17 of the FDD, which typically covers dispute resolution, and to seek legal counsel to fully understand their rights and obligations regarding litigation venue. Franchisees should also inquire with Amerispec Inspection Services about the standard venue for litigation outside of North Dakota to be fully informed.