Under what circumstances is the Rider to the Franchise Agreement signed for a Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you are parties to that certain Franchise Agreement that has been signed concurrently with the signing of this Rider (the "Franchise Agreement"). This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) the offer or sale of the franchise for the Clear Pest Pros Business that you will operate under the Franchise Agreement was made in the State of North Dakota, and/or (b) you are a resident of North Dakota and your Business will be located or operated in North Dakota.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 FDD, a Rider to the Franchise Agreement for Clear Pest Pros is signed under specific circumstances related to the location and residency of the franchisee. The Rider is annexed to and forms part of the Franchise Agreement, indicating its importance in modifying the standard agreement.
Specifically, the Rider is signed if (a) the offer or sale of the Clear Pest Pros franchise was made in the State of North Dakota, and/or (b) the franchisee is a resident of North Dakota and their business will be located or operated in North Dakota. This suggests that the Rider contains specific provisions tailored to comply with North Dakota's franchise laws, which may differ from those in other states. These provisions address topics such as releases, covenants not to compete, governing law, dispute resolution, and waivers of damages and jury trials, ensuring that the franchise agreement aligns with North Dakota regulations.
For a prospective Clear Pest Pros franchisee, this means that if they are purchasing a franchise in North Dakota or are a resident of North Dakota, they will need to carefully review the Rider in conjunction with the standard Franchise Agreement to understand their rights and obligations under North Dakota law. The Rider modifies certain sections of the Franchise Agreement, and it is crucial to understand how these modifications affect the franchisee's operation and legal standing. Franchisees outside of North Dakota would not be subject to this rider.