Does the agreement specify any exceptions to the mutual releases between Clear Pest Pros and the Franchise Owner?

According to Clear Pest Pros's 2025 Franchise Disclosure Document, the franchise agreement includes provisions for mutual releases between the franchisor and franchisee, particularly upon renewal of the franchise agreement. Specifically, Item 22 outlines that as a condition of awarding a renewal term, both Clear Pest Pros and the franchisee must sign a mutual general release. This release covers any and all claims against each other and their respective stakeholders, including shareholders, officers, directors, employees, agents, successors, and assigns.

However, the FDD also indicates that Clear Pest Pros retains the discretion to change the requirement to sign a general release. This implies that while a mutual release is generally expected upon renewal, Clear Pest Pros can waive this requirement at its discretion. This flexibility allows Clear Pest Pros to address specific situations or concerns that might warrant deviating from the standard release procedure.

Furthermore, the mutual release is contingent upon the franchisee meeting all other conditions for renewal, such as compliance with the existing franchise agreement and correcting any operational deficiencies. The franchisee must also be willing to sign the then-current franchise agreement and any ancillary agreements, which may include different royalty terms or territory definitions. Therefore, the mutual release is not an isolated event but is integrated into the broader context of franchise renewal and compliance.