What law governs the Clear Pest Pros Franchise Agreement, excluding federal law?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise agreement | Summary | |
|---|---|---|---|
| t. | Integration/merger clause | Section 15.L | Only the terms of the Franchise Agreement are binding (subject to state law). Any representations or promises outside of the disclosure document and Franchise Agreement may not be enforceable. Notwithstanding the foregoing, nothing in any agreement or any related agreement is intended to disclaim the representations made in this Franchise Disclosure Document, its exhibits and amendments. |
| u. | Dispute resolution by arbitration | Sections 15.F.1 and 15.F.2 | You must bring any disputes arising out of the Franchise Agreement or any other agreement with us to our President prior to bringing a claim before any third party in an attempt to resolve the dispute internally. After exhaustion of this internal dispute resolution procedure, at our option, all claims or disputes between you and us must be submitted first to binding arbitration in Ann Arbor, Michigan, in accordance with the American Arbitration Association's Commercial Arbitration Rules then in effect (subject to state law). |
| v. | Choice of forum | Section 15.F.3 | All claims not subject to arbitration must be commenced in the state or federal court of general jurisdiction, in Washtenaw County, Michigan or the United States District Court for the Eastern District of Michigan (subject to state law). |
| w. | Choice of law | Section 15.H | Except for federal law, Michigan law applies (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION. (FDD pages 58–63)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the Franchise Agreement, excluding federal law, is governed by Michigan law, although this is subject to state law. This is detailed in Section 15.H of the agreement.
For a prospective Clear Pest Pros franchisee, this means that the interpretation and enforcement of the Franchise Agreement will primarily be based on Michigan law. However, the phrase "subject to state law" suggests that certain provisions of the agreement might be overridden or modified by the laws of the state where the franchisee operates their Clear Pest Pros business. This could pertain to aspects like non-compete clauses or dispute resolution processes, as these areas often have specific state regulations that can impact the enforceability of the franchise agreement terms.
It is important for a potential Clear Pest Pros franchisee to consult with a legal professional to understand how Michigan law and the laws of their specific state might affect their rights and obligations under the Franchise Agreement. This is especially crucial given the statement that the application of Michigan law is "subject to state law," indicating potential variations in enforcement depending on the franchisee's location.