For the Clear Pest Pros Franchise Agreement Addendum in Illinois, what statute is recognized?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
9. Surety Bond.
A Surety Bond has been obtained by Franchisor to assure its financial capability; the bond is on file with the Office of the Illinois Attorney General. This financial assurance requirement was imposed by the Office of the Illinois Attorney general due to Franchisor's financial condition. Item 5 of the Franchise Disclosure Document and Section 2 of the Franchise Agreement are amended accordingly.
10. Disclosure Questionnaire.
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, the addendum to the franchise agreement for use in Illinois does not explicitly recognize a specific statute. However, it does mention a surety bond that has been obtained by Clear Pest Pros and is on file with the Office of the Illinois Attorney General. This bond assures Clear Pest Pros' financial capability and was required by the Attorney General due to the company's financial condition. Item 5 of the Franchise Disclosure Document and Section 2 of the Franchise Agreement are amended accordingly.
Additionally, the addendum states that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on behalf of Clear Pest Pros. This provision supersedes any other term in any document executed in connection with the franchise.
While no specific statute is named, these clauses protect the franchisee's rights under Illinois franchise law and ensure financial security through the surety bond. A prospective franchisee should consult with a legal professional to fully understand their rights and obligations under Illinois law.