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Does the Clear Pest Pros agreement specify which state laws govern the interpretation of the release?

Clear_Pest_Pros Franchise · 2025 FDD

Answer from 2025 FDD Document

1. BACKGROUND.

We and you are parties to that certain Franchise Agreement that has been signed concurrently with the signing of this Rider (the "Franchise Agreement"). This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) the offer or sale of the franchise for the Clear Pest Pros Business that you will operate under the Franchise Agreement was made in the State of North Dakota, and/or (b) you are a resident of North Dakota and your Business will be located or operated in North Dakota.

2. AGREEMENTS/RELEASES.

Sections 10.B.8, 11.C and 12.A. of the Franchise Agreement are amended by adding the following: "Any release required as a condition of renewal and/or assignment/transfer will not apply to the extent otherwise prohibited by applicable law with respect to claims arising under the North Dakota Franchise Investment Law.

Source: Item 22 — CONTRACTS (FDD pages 67–68)

What This Means (2025 FDD)

According to the 2025 Clear Pest Pros Franchise Disclosure Document, the franchise agreement includes stipulations regarding governing law, particularly concerning releases and their interpretation under specific state laws. For franchisees operating in North Dakota, any release required as a condition of renewal or assignment/transfer will not apply if prohibited by applicable law with respect to claims arising under the North Dakota Franchise Investment Law. This means that Clear Pest Pros franchisees in North Dakota retain their rights under the state's franchise investment law, regardless of any release clauses in the standard franchise agreement.

Furthermore, the FDD states that the standard governing law clause in Section 15.H of the Franchise Agreement is modified to include an exception for requirements under North Dakota law. This ensures that the franchise agreement adheres to North Dakota's specific legal requirements. Similarly, the dispute resolution procedures are amended to allow franchisees to bring actions in North Dakota for claims arising under the North Dakota Franchise Investment Law, subject to the franchisee's dispute resolution obligations.

These provisions indicate that Clear Pest Pros acknowledges and accommodates state-specific franchise laws, particularly in North Dakota, to protect franchisees' rights and ensure compliance with local regulations. Prospective franchisees should be aware of how these state-specific clauses may affect their rights and obligations under the franchise agreement, especially if they are operating in a state with franchise-specific laws like North Dakota.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.