What is the purpose of the Addendum to the Franchise Agreement for Clear Pest Pros in Minnesota?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
This Rider is being executed because (a) the offer or sale of the franchise for the Clear Pest Pros franchise you will operate under the Agreement was made in the State of Minnesota and you will operate the Franchise in the State of Minnesota and/or (b) you are a resident of the State of Minnesota.
Minnesota Rules 2860.4400(G) prohibits a franchisor from imposing on a franchisee by contract or rule, whether written or oral, any standard of conduct that is unreasonable.
Marks. The following language is added at the end of Section 4 of the Agreement:
Pursuant to Minnesota Stat. Sec. 80C.12, Subd. 1(g), we are required to protect any rights that you have to use our proprietary rights, including your right to use the trademarks, service marks, trade names, logotypes or other commercial symbols and indemnify the franchisee from any loss, costs, or expenses arising out of any claim, suite or demand regarding the use of the name.
Termination by Franchisor. The following language is added to Section 12.B of the Agreement:
With respect to franchises governed by Minnesota law, the franchisor will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5 which require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of the franchise agreement and that consent to the transfer of the franchise will not be unreasonably withheld. The franchisor will comply with Minnesota law in this respect in its performance of the franchise agreement and any ancillary agreements.
Waiver of Punitive Damages and Jury Trial. The following is added to Section 15.I, of the Agreement:
Minn. Rule 2860.4400J. prohibits the waiver of a jury trial.
Limitations of Claims. The Limitations of Claims section must comply with Minnesota Stat. § 80C.17, subd. 5.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the Addendum to the Franchise Agreement for use in Minnesota addresses specific legal requirements and consumer protections mandated by Minnesota state law. This addendum is crucial for franchisees operating in Minnesota, as it modifies certain sections of the standard Franchise Agreement to ensure compliance with Minnesota statutes and rules. The Rider is executed because the franchise is offered or sold in Minnesota, and the franchisee will operate there, or because the franchisee is a Minnesota resident. This highlights the importance of understanding state-specific regulations when investing in a franchise.
Specifically, the addendum addresses several key areas. It ensures that Clear Pest Pros protects the franchisee's rights to use proprietary rights like trademarks and service marks, as required by Minnesota Statute Sec. 80C.12, Subd. 1(g), and to indemnify the franchisee from losses related to the use of the name. It also ensures compliance with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5 regarding termination and non-renewal notices, providing franchisees with 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal, except in specific cases. Furthermore, it confirms that consent to transfer the franchise will not be unreasonably withheld, aligning with Minnesota law.
The addendum also addresses waivers and limitations of claims, ensuring they comply with Minnesota law. It states that Minn. Rule 2860.4400J prohibits the waiver of a jury trial and that limitations of claims must comply with Minnesota Stat. § 80C.17, subd. 5. Additionally, the addendum references Minnesota Rules 2860.4400(G), which prohibits Clear Pest Pros from imposing unreasonable standards of conduct on franchisees.
In practical terms, the Minnesota addendum provides additional protections and clarifications for franchisees operating in that state, ensuring that the franchise agreement adheres to local laws. Prospective franchisees should carefully review this addendum to understand their rights and obligations under Minnesota law, as it modifies the standard franchise agreement to provide specific legal safeguards and consumer protections.