Where will binding arbitration take place for disputes with Clear Pest Pros?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
- Arbitration. At our option, all claims or disputes between us, our shareholders, officers, directors, agents and employees and you, arising out of, or in any way relating to, this Agreement or any other agreement by and between you and us or our affiliates, or any of the parties' respective rights and obligations arising from such agreement, or the operation of the Clear Pest Pros Business which are not first resolved through the internal dispute resolution procedure set forth in Section 15.F.1 above, must be submitted first to binding arbitration in Ann Arbor, Michigan under the auspices of the American Arbitration Association ("AAA"), in accordance with AAA's Commercial Arbitration Rules then in effect, and with a mutually agreeable arbitrator with at least five (5) years of franchise law experience. Each party shall bear its own cost of arbitration and you and we shall share costs imposed by the arbitrator equally. This agreement to arbitrate shall survive any termination or expiration of this Agreement.
Notwithstanding the foregoing, we shall not be required to arbitrate, and may initiate litigation in court, in accordance with the procedure set forth in Section 15.F.4 any controversy, dispute, or claim as set forth in this Section 15.F.3 if such controversy, dispute, or claim concerns an allegation that you have violated (or threaten to violate, or pose an imminent risk of violating):
- a.
Any federally protected intellectual property rights in the Marks, the System, trade secrets, or Confidential Information;
- b.
Any claims pertaining to or arising out of any warranty issue;
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, any claims or disputes that are not resolved through internal dispute resolution must be submitted to binding arbitration in Ann Arbor, Michigan. This arbitration will occur under the rules of the American Arbitration Association (AAA).
The arbitrator selected must have at least five years of experience in franchise law. Each party is responsible for their own arbitration costs, while costs imposed by the arbitrator will be shared equally between the franchisee and Clear Pest Pros. This agreement to arbitrate survives any termination or expiration of the Franchise Agreement.
However, Clear Pest Pros is not required to arbitrate and may initiate litigation in court for disputes involving alleged violations (or threatened violations) of federally protected intellectual property rights in the Marks, the System, trade secrets, or Confidential Information, or any claims pertaining to or arising out of any warranty issue.