For Clear Pest Pros franchisees in Virginia, what is the effect of the addendum on Item 5 of the FDD?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
ged to exist.
- The following language is added at the end of Section 15.F and Section 15.H. of the Agreement:
§19-28.1-14 of the Rhode Island Franchise Investment Act provides that A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this act.
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
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, an addendum to the franchise agreement for use in Virginia affects Item 5 and Item 21. Specifically, due to Clear Pest Pros' financial condition, the Virginia Division of Securities and Retail Franchising requires Clear Pest Pros to defer collecting initial franchise fees. This deferral lasts until Clear Pest Pros fulfills all initial obligations to the franchisee under the franchise agreement and related documents, and until the franchisee actually starts operating the Clear Pest Pros business.
This addendum protects prospective Clear Pest Pros franchisees in Virginia. It ensures that franchisees do not pay the initial franchise fee before Clear Pest Pros has met its initial obligations. This reduces the franchisee's risk, as they are not investing in a business that may not be fully operational or supported by the franchisor.
This type of state-specific addendum is common in franchising, as states often have their own regulations to protect franchisees. The Virginia Division of Securities and Retail Franchising's requirement reflects a concern about Clear Pest Pros' financial stability, making it essential for potential franchisees in Virginia to carefully review this addendum and understand its implications for their investment and the timing of their fee payments.