Where will binding arbitration take place for 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, Michigan law applies (subject to state 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, disputes between Clear Pest Pros and its franchisees that proceed to binding arbitration must take place in Ann Arbor, Michigan. This is according to the terms outlined in Section 15.F.1 and 15.F.2 of the franchise agreement. However, before initiating a claim with a third party, franchisees are first required to engage in an internal dispute resolution process with the President of Clear Pest Pros.
This arbitration clause means that prospective Clear Pest Pros franchisees would likely need to travel to Ann Arbor, Michigan, to resolve legal disputes with the company. Arbitration is a form of alternative dispute resolution that is generally faster and less expensive than litigation. However, the requirement to arbitrate in Michigan could increase costs for franchisees located elsewhere due to travel and attorney fees.
It is important to note that the arbitration process will follow the American Arbitration Association’s Commercial Arbitration Rules. Also, these dispute resolution terms are subject to state law, which means that certain state laws may override or modify these provisions. Franchisees should consult with an attorney to understand the full implications of these dispute resolution procedures and how they apply in their specific state.