Is the Clear Pest Pros franchise agreement binding upon both the franchisor and the franchisee?
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:
-
- 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].
-
- In reliance upon the execution of renewal Franchise Agreements, the parties agree to the following mutual releases:
-
- 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.
-
- 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, both the franchisor and franchisee are bound by the franchise agreement. Specifically, in the event that Clear Pest Pros and a franchise owner agree upon new renewal franchise agreements, these agreements will be executed contemporaneously with a mutual release, replacing the original franchise agreements. This ensures the franchise owner's continued right to operate a Clear Pest Pros business within a defined territory.
Furthermore, the mutual release explicitly states that both the franchise owner(s)/franchisee and the franchisor release each other from any and all claims, actions, and demands related to any acts or omissions occurring prior to the date of the release. This indicates a mutual agreement to resolve past issues and move forward under the new franchise agreement. The agreement is binding on both parties, as evidenced by the language indicating that both parties "agreed and understood" the terms and conditions outlined in the document.
This mutual obligation is a standard practice in franchising, ensuring that both parties are committed to the terms and conditions of the agreement. The Clear Pest Pros franchise agreement, like many franchise agreements, requires both the franchisor and franchisee to uphold their respective responsibilities and obligations, fostering a stable and predictable business relationship.