Does the Clear Pest Pros franchise agreement prohibit the consolidation of proceedings between the franchisee and Clear Pest Pros with any other proceeding between Clear Pest Pros and a third party?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
THE PARTIES AGREE THAT ALL PROCEEDINGS ARISING OUT OF OR RELATED TO THIS AGREEMENT, OR THE SALE OF THE Clear Pest Pros BUSINESS, WILL BE CONDUCTED ON AN INDIVIDUAL, NOT A CLASS-WIDE BASIS, AND THAT ANY PROCEEDING BETWEEN YOU, YOUR OWNERS AND US OR OUR AFFILIATES/OFFICERS/EMPLOYEES MAY NOT BE CONSOLIDATED WITH ANY OTHER PROCEEDING BETWEEN US AND ANY OTHER THIRD PARTY.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, the franchise agreement addresses the consolidation of proceedings. Specifically, it states that any proceedings arising out of or related to the agreement or the sale of the Clear Pest Pros business will be conducted on an individual basis, not as part of a class-wide action.
Furthermore, the agreement explicitly prohibits the consolidation of any proceeding between a franchisee, their owners, and Clear Pest Pros (including its affiliates, officers, and employees) with any other proceeding between Clear Pest Pros and a third party. This means a franchisee cannot join their legal action against Clear Pest Pros with a lawsuit brought by someone else against the company.
This clause ensures that any legal disputes between the franchisee and Clear Pest Pros are handled separately and prevents franchisees from joining forces in a class-action style lawsuit. This could potentially limit a franchisee's legal options and increase their individual costs if a dispute arises, as they would be responsible for their own legal expenses without the ability to share resources with other franchisees facing similar issues.