What is the effect of the Virginia addendum on other terms in documents related to the Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
In all other respects, the terms and conditions contained in your Franchise Agreement, and any previous Addenda to your Franchise Agreement, remain in effect.
ADDENDUM TO THE FRANCHISE AGREEMENT FOR USE IN VIRGINIA
This is a Rider to the Franchise Agreement which is being executed concurrently with this rider, between Franchisor and Franchisee.
Item 5 and Item 21 are amended to state: Based upon the franchisor's financial condition, the Virginia Division of Securities and Retail Franchising has required that we defer the collection of initial fees until all initial obligations owed to franchisee under the franchise agreement or other documents have been fulfilled by the franchisor and the franchisee has commenced doing business pursuant to the franchise agreement.
No statement, questionnaire, or acknowledgment 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 any statement made by any franchisor, franchise seller, or other person acting 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, the Virginia addendum modifies the franchise agreement and related documents in specific ways. It states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on franchisor statements. This provision takes precedence over any conflicting terms in other documents.
Furthermore, the Virginia Division of Securities and Retail Franchising requires Clear Pest Pros to defer collecting initial franchise fees until all initial obligations to the franchisee are fulfilled and the franchisee has commenced business operations. This amendment to Item 5 and Item 21 of the franchise agreement ensures that Clear Pest Pros cannot collect the initial franchise fee before fulfilling their obligations to the franchisee.
In practical terms, this means a Clear Pest Pros franchisee in Virginia has stronger legal protections against unknowingly waiving rights or disclaiming reliance on franchisor representations. They also benefit from deferred payment of the initial franchise fee, reducing their upfront financial risk. This is more protective than in some states, where such waivers might be enforceable. Prospective franchisees should carefully review the Virginia addendum and understand their rights under Virginia law.