Under what circumstances is the Rider to the Agreement executed for a Clear Pest Pros franchise?
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, a Rider to the Franchise Agreement is executed under specific circumstances related to the location and residency of the franchisee. For franchisees operating in Minnesota, a Rider is executed if the offer or sale of the franchise was made in Minnesota, or if the franchisee is a resident of Minnesota. This Rider includes stipulations to comply with Minnesota law, such as protecting the franchisee's rights to use proprietary rights and trademarks, and adhering to notice requirements for termination and non-renewal as per Minnesota Statutes.
Similarly, for franchisees operating in Maryland, a Rider is executed if the franchise offer or sale occurred in Maryland, or if the franchisee resides in Maryland. This Rider addresses specific requirements under the Maryland Franchise Registration and Disclosure Law, including stipulations regarding releases, statutes of limitations, dispute resolution, and acknowledgments.
Finally, a Rider is also executed for franchisees operating in North Dakota if the offer or sale of the franchise was made 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 certain sections of the Franchise Agreement to comply with the North Dakota Franchise Investment Law, particularly concerning agreements, releases, covenants not to compete, governing law, dispute resolution procedures, and waivers of damages and jury trials.