Under what circumstances can the terms of the Clear Pest Pros Mutual Release be disclosed?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
It is also agreed and understood that if you sell any one (1) or more of your Clear Pest Pros franchise businesses, as a condition precedent to our approving your purchaser as a new Clear Pest Pros franchisee, you will agree with your purchaser and with us not to compete for 24 months after the sale closing, by providing the pest management for all manner of ants, spiders, roaches, stinging pests, flying pests and rodents on a recurring and/or one time basis, and/or other related services within a geographic area extending out from the purchased Clear Pest Pros territory boundaries, in every direction, for 50 miles. Provided, however, these non-competition provisions do not create or imply any additional restrictions upon your ownership of other Clear Pest Pros franchise business(es) in and around this geographic area.
The terms of this Addendum shall remain confidential and may not be disclosed except when and to the extent necessary to comply with applicable federal, state, or local laws or regulations.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, the terms of the addendum regarding the sale of a franchise business, which includes a mutual release, must remain confidential. However, there is an exception. The terms can be disclosed if it is necessary to comply with applicable federal, state, or local laws or regulations.
This means that a Clear Pest Pros franchisee is generally prohibited from sharing the details of the sale agreement, including the mutual release, with others. This is likely to protect the franchisor's interests and maintain consistency in franchise agreements.
The exception allows for disclosure when required by law. For example, if a court orders the disclosure of the terms as part of a legal proceeding, or if regulations require the terms to be disclosed to a government agency, then the franchisee would be permitted to disclose the information.
It is important for prospective Clear Pest Pros franchisees to understand this confidentiality provision and seek legal counsel if they have any questions about their obligations.