Is arbitration mandatory for all disputes between Clear Pest Pros and its franchisees?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise agreement | Summary | |
|---|---|---|---|
| t. | Integration/merger clause | Section 15.L | Only the terms of the Franchise Agreement are binding (subject to state law). Any representations or promises outside of the disclosure document and Franchise Agreement may not be enforceable. Notwithstanding the foregoing, nothing in any agreement or any related agreement is intended to disclaim the representations made in this Franchise Disclosure Document, its exhibits and amendments. |
| u. | Dispute resolution by arbitration | Sections 15.F.1 and 15.F.2 | You must bring any disputes arising out of the Franchise Agreement or any other agreement with us to our President prior to bringing a claim before any third party in an attempt to resolve the dispute internally. After exhaustion of this internal dispute resolution procedure, at our option, all claims or disputes between you and us must be submitted first to binding arbitration in Ann Arbor, Michigan, in accordance with the American Arbitration Association's Commercial Arbitration Rules then in effect (subject to state law). |
| v. | Choice of forum | Section 15.F.3 | All claims not subject to arbitration must be commenced in the state or federal court of general jurisdiction, in Washtenaw County, Michigan or the United States District Court for the Eastern District of Michigan (subject to state law). |
| w. | Choice of law | Section 15.H | Except for federal law |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION. (FDD pages 58–63)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, dispute resolution involves an initial internal process. Franchisees must first present any disputes arising from the Franchise Agreement or other agreements to Clear Pest Pros's President for internal resolution.
Following this internal procedure, the FDD states that arbitration is not necessarily mandatory for all disputes. Instead, Clear Pest Pros has the option to require that all claims or disputes between the franchisee and Clear Pest Pros be submitted to binding arbitration. If Clear Pest Pros elects for arbitration, it will take place in Ann Arbor, Michigan, following the American Arbitration Association’s Commercial Arbitration Rules. This is subject to state law.
For claims not subject to arbitration, the 2025 FDD specifies that such claims must be initiated in the state or federal court of general jurisdiction located in Washtenaw County, Michigan, or the United States District Court for the Eastern District of Michigan. The FDD also indicates that, except for federal law, Michigan law governs the interpretation and enforcement of the Franchise Agreement, although this is also subject to state law.