What is the effect of waiving Section 1542 in the Clear Pest Pros agreement?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- [CALIFORNIA ONLY] Except as set forth herein, FRANCHISOR, FRANCHISE OWNER(S) and FRANCHISEE expressly waives and relinquishes all rights and benefits afforded by Section 1542 of the Civil Code of the State of California ("Section 1542"), and does so understanding and acknowledging the significance and consequence of such specific waiver of Section 1542. Section 1542 states as follows:
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH EITHER PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN ITS FAVOR AS OF THE DATE OF EXECUTION OF THIS AGREEMENT, WHICH IF KNOWN BY SUCH PARTY WOULD HAVE MATERIALLY AFFECTED THE TERMS OF THE AGREEMENT."
Notwithstanding the provisions of Section 1542, and for the purpose of implementing the general release and discharges described in this paragraph, FRANCHISOR, FRANCHISE OWNER(S) and FRANCHIS
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, waiving Section 1542 of the California Civil Code means the franchisee gives up rights to claims they don't know about when signing the agreement. This waiver is applicable to franchisees in California.
Specifically, Section 1542 states that "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH EITHER PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN ITS FAVOR AS OF THE DATE OF EXECUTION OF THIS AGREEMENT, WHICH IF KNOWN BY SUCH PARTY WOULD HAVE MATERIALLY AFFECTED THE TERMS OF THE AGREEMENT." By waiving this section, a Clear Pest Pros franchisee agrees to release the franchisor from any claims, even those that are unknown at the time of signing, that could have affected the agreement's terms if known.
This waiver means a Clear Pest Pros franchisee in California assumes the risk of unknown claims or issues that may arise later. It limits the franchisee's ability to seek legal recourse for unforeseen problems that existed before the agreement was signed but were not discovered until later. Franchisees should carefully consider the implications of this waiver and consult with legal counsel to understand their rights and potential risks before signing the agreement.