factual

Can Clear Pest Pros disclaim reliance on behalf of the franchisor through the Disclosure Questionnaire?

Clear_Pest_Pros Franchise · 2025 FDD

Answer from 2025 FDD Document

No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

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

What This Means (2025 FDD)

According to the 2025 Clear Pest Pros Franchise Disclosure Document, Clear Pest Pros cannot disclaim reliance on any statement made by the franchisor via any statement, questionnaire, or acknowledgement signed by a franchisee. This protection extends to claims under applicable state franchise laws, including fraud in the inducement. This specific provision overrides any conflicting terms in any document related to the franchise agreement.

This means that even if a franchisee signs a document, such as the Disclosure Questionnaire, that seems to waive their right to claim they relied on statements made by Clear Pest Pros, that waiver is not legally effective. Franchisees retain the right to pursue claims based on statements made by Clear Pest Pros, especially regarding potential misrepresentations or fraudulent inducements. This is a significant protection for franchisees, ensuring they are not bound by disclaimers that could prevent them from seeking legal recourse if they believe they were misled.

However, the FDD also states that the Disclosure Questionnaire should not be signed if the franchisee is a resident of Maryland, Washington, or California, or if the business is to be operated in those states. This suggests that there may be specific state laws or regulations that affect the use of the Disclosure Questionnaire in those jurisdictions. Prospective franchisees in these states should seek legal counsel to understand their rights and obligations regarding the Disclosure Questionnaire and any similar documents.

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.