What is the consideration for the mutual release in the Clear Pest Pros agreement?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by and between each of the parties, it is agreed and understood as follows:
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- FRANCHISE OWNER(S) and FRANCHISOR have agreed upon new renewal Franchise Agreements, to be executed contemporaneously with this Mutual Release, which will replace your original Franchise Agreements, thus continuing FRANCHISE OWNER(S) rights to operate a Clear Pest Pros business within a Territory, as defined in the Franchise Agreement in the State of [State].
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- In reliance upon the execution of renewal Franchise Agreements, the parties agree to the following mutual releases:
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- FRANCHISE OWNER(S) and FRANCHISEE, for themselves and for their employees, agents, heirs, successor and assigns, and for every other person, firm, entity, and/or corporation succeeding to the interest of FRANCHISE OWNER(S) and/or FRANCHISEE, hereby releases, acquits, and forever discharges FRANCHISOR and its directors, officers, shareholders, employees, agents, legal representatives, successors and assigns, and every other person, firm, entity, and/or corporation succeeding to its interests, from any and all claims, actions, causes of action, demands, costs, losses, expenses and suits whatsoever and of every conceivable kind, character, and nature, whether absolute or contingent, and whether known or unknown, which either party may have against the other, by reason of, or arising out of, or in any way related to any acts or omissions of the other party occurring prior to the date of this Release.
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- FRANCHISOR, for themselves and for their employees, agents, heirs, successor and assigns, and for every other person, firm, entity, and/or corporation succeeding to the interest of FRANCHISOR, hereby releases, acquits, and forever discharges FRANCHISE OWNER(S) and/or FRANCHISEE and their directors, officers, shareholders, employees, agents, legal
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Clear Pest Pros Franchise Disclosure Document, the consideration for the mutual release between the franchisee and franchisor involves the agreement upon new renewal Franchise Agreements. These agreements, executed simultaneously with the Mutual Release, will replace the original Franchise Agreements, thereby continuing the franchisee's rights to operate a Clear Pest Pros business within a defined territory in a specific state.
In essence, the mutual release is contingent upon both parties agreeing to and executing the new renewal franchise agreements. This ensures the franchisee can continue operating their Clear Pest Pros business. Both parties agree to release each other from any claims related to acts or omissions before the date of the release, providing a clean slate moving forward under the new agreement.
This type of mutual release is a fairly standard practice in franchise renewals. It protects both Clear Pest Pros and the franchisee from potential past liabilities, fostering a fresh start under the renewed terms. The franchisee should carefully review the new franchise agreement and understand the implications of the release before signing, as it waives their right to pursue claims for past issues.