Are there any exceptions to the Clear Pest Pros franchisee's obligation to indemnify the Indemnified Parties?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
Sections 10.B.8, 11.C and 12.A. of the Franchise Agreement are amended by adding the following: "Any release required as a condition of renewal and/or assignment/transfer will not apply to the extent otherwise prohibited by applicable law with respect to claims arising under the North Dakota Franchise Investment Law.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, a franchisee's indemnification obligations may be subject to certain legal limitations, specifically in North Dakota. For franchisees operating in or residing in North Dakota, any release required as a condition of renewal or assignment/transfer will not apply to the extent prohibited by applicable law with respect to claims arising under the North Dakota Franchise Investment Law. This means that Clear Pest Pros franchisees in North Dakota may not be required to provide a full release of claims if such a release is prohibited by North Dakota law.
This exception is outlined in an amendment to the franchise agreement via a rider that addresses specific state law considerations. This rider acknowledges that the offer or sale of the Clear Pest Pros franchise was made in North Dakota, or that the franchisee is a resident of North Dakota, and that their business will be located or operated in North Dakota.
This type of state-specific exception is not uncommon in franchising, as franchise agreements often need to be modified to comply with varying state laws. Prospective Clear Pest Pros franchisees should carefully review any state-specific addenda or riders to the franchise agreement to understand how local laws may affect their rights and obligations.