How does Clear Pest Pros account for advertising expenses?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
other miscellaneous accrued liabilities.
Notes to Consolidated Financial Statements (dollars in thousands)
Advertising Expense
Advertising expense is charged to income during the year in which it is incurred. Adverti
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, advertising expenses are charged to income during the year they are incurred. In 2024, Clear Pest Pros' advertising expenses totaled $2,680,000. In 2023, these expenses were $3,027,000, and in 2022, they amounted to $3,806,000.
This means that Clear Pest Pros recognizes advertising costs as expenses in the same year they occur, rather than spreading them out over multiple years. For a franchisee, this indicates that the financial statements will reflect the full impact of advertising spending in the year it takes place.
Prospective franchisees should note the fluctuations in advertising expenses over the three years presented. While this information provides a historical view, it does not detail how advertising funds are collected from franchisees or how those funds are used specifically. Franchisees may want to inquire about Clear Pest Pros' advertising strategy and how it benefits individual franchise locations.