Under what circumstances is the Clear Pest Pros franchise agreement Rider being executed?
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.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the Rider to the franchise agreement is executed under specific circumstances related to the location of the franchise and the franchisee's residency. For franchisees operating in Minnesota, Maryland, or North Dakota, a rider is added to the standard franchise agreement to address specific state laws.
For Minnesota, the Rider is executed when the offer or sale of the Clear Pest Pros franchise is made in Minnesota, and the franchise will operate there, or if the franchisee is a resident of Minnesota. This ensures compliance with Minnesota Rules 2860.4400(G), which prohibits franchisors from imposing unreasonable standards of conduct on franchisees. The Rider also includes language to protect the franchisee's rights to use Clear Pest Pros's proprietary rights and trademarks, and it addresses termination and non-renewal notices as required by Minnesota law.
Similarly, for Maryland, the Rider is executed if the franchise offer or sale occurs in Maryland and the franchise operates there, or if the franchisee resides in Maryland. This Rider modifies sections of the agreement related to general releases, enforcement, dispute resolution, and acknowledgments to align with the Maryland Franchise Registration and Disclosure Law. For North Dakota, the Rider is executed if the franchise offer or sale occurs in North Dakota, or if the franchisee is a resident of North Dakota and the business will be located or operated there. This Rider modifies sections of the agreement related to agreements/releases, covenant not to compete, governing law, dispute resolution procedures, and waiver of exemplary and punitive damages and jury trial to align with the North Dakota Franchise Investment Law.
In practical terms, these Riders ensure that Clear Pest Pros franchises comply with state-specific regulations, providing franchisees with additional protections and rights as mandated by the laws of Minnesota, Maryland, and North Dakota. Prospective franchisees should carefully review these Riders to understand how they modify the standard franchise agreement and what additional rights and obligations they may have based on their location or residency.