conditional

Under what condition is it unlawful for Clear Pest Pros to repurchase a franchisee's business?

Clear_Pest_Pros Franchise · 2025 FDD

Answer from 2025 FDD Document

No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

ADDENDUM TO THE FRANCHISE AGREEMENT FOR USE IN HAWAII

Source: Item 22 — CONTRACTS (FDD pages 67–68)

What This Means (2025 FDD)

According to the 2025 FDD, Clear Pest Pros includes an addendum to the franchise agreement for use in Hawaii that addresses franchisee rights. Specifically, no statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with starting the franchise can waive claims under state franchise law, including fraud. This also means a franchisee cannot disclaim reliance on statements made by Clear Pest Pros or anyone acting on its behalf.

In practical terms, this means that Clear Pest Pros cannot enforce any agreement that prevents a franchisee from pursuing legal claims against them under Hawaii's franchise laws. This includes claims related to misrepresentation or fraud during the franchise sales process. The provision ensures that franchisees in Hawaii retain their legal rights and recourse, regardless of any documents they may have signed.

This type of provision is important for protecting franchisees, as it prevents franchisors from using contractual language to shield themselves from liability for misconduct. Prospective Clear Pest Pros franchisees in Hawaii should be aware of this protection and understand that they cannot be forced to waive their legal rights.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.