Under the Clear Pest Pros Franchise Agreement, what arbitration rules apply to disputes?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
losure Document, its exhibits and amendments. | | u. | Dispute resolution by arbitration | Sections 15.F.1 and 15.F.2 | You must bring any disputes arising out of the Franchise Agreement or any other agreement with us to our President prior to bringing a claim before any third party in an attempt to resolve the dispute internally. After exhaustion of this internal dispute resolution procedure, at our option, all claims or disputes between you and us must be submitted first to binding arbitration in Ann Arbor, Michigan, in accordance with the American Arbitration Association’s Commercial Arbitration Rules then in effect (subject to state law). | | v.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION. (FDD pages 58–63)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, disputes arising from the Franchise Agreement must initially be brought to the attention of Clear Pest Pros's President for internal resolution. If this process fails to resolve the dispute, Clear Pest Pros has the option to require binding arbitration.
The arbitration will take place in Ann Arbor, Michigan, and will follow the American Arbitration Association’s Commercial Arbitration Rules that are in effect at the time. It is important to note that these arbitration rules are subject to state law, which means the specific application and enforcement of these rules can vary depending on the relevant jurisdiction.
For a prospective Clear Pest Pros franchisee, this means that any disagreements with Clear Pest Pros could potentially be resolved through arbitration rather than in court, if Clear Pest Pros chooses this route. Arbitration is often considered a faster and less expensive alternative to litigation, but it also typically involves limited discovery and a narrower scope for appeal. Franchisees should familiarize themselves with the American Arbitration Association’s Commercial Arbitration Rules to understand the procedures and their rights during arbitration. The FDD also specifies that Michigan law governs the agreement, except for federal law.