What agreement must the Designated Manager sign for a Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as stated herein, you must designate at least one managing owner (the "Managing Owner") who will be our primary individual contact with your Clear Pest Pros Business and who we will approve in our sole discretion. A Managing Owner may, in our sole discretion, serve as the Managing Owner of more than one Clear Pest Pros Business that is owned by you; provided, however, that we may, in our sole discretion, require you to designate a person who will serve as the primary individual contact for this Clear Pest Pros Business (the "Designated Manager"). We must approve of the Designated Manager in writing, which we may grant in our sole discretion. The Managing Owner and, if applicable, the Designated Manager, must successfully complete our JumpStart and Initial Training Programs as described in and required by the Franchise Agreement. The Designated Manager is not required to have an ownership interest in the Clear Pest Pros Business. The Designated Manager must sign our prescribed form of confidentiality and non-compete agreement.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 FDD, if a Clear Pest Pros franchise has a Designated Manager, that manager must sign the franchisor's prescribed confidentiality and non-compete agreement. This agreement likely restricts the Designated Manager from disclosing confidential information about the Clear Pest Pros business and from competing with the franchise during and after their tenure.
This requirement ensures that Clear Pest Pros protects its trade secrets, customer information, and overall business model. By having the Designated Manager sign a confidentiality and non-compete agreement, Clear Pest Pros aims to prevent the manager from using their knowledge of the business to benefit a competitor or start a competing business. This is a standard practice in franchising to safeguard the franchisor's interests and maintain a competitive edge.
For a prospective Clear Pest Pros franchisee, this means that if they choose to appoint a Designated Manager, that individual will be legally bound by the terms of the confidentiality and non-compete agreement. The franchisee should carefully review the terms of this agreement with their Designated Manager to ensure they understand their obligations and restrictions. It is also important to note that the franchisor must approve the Designated Manager in writing, giving Clear Pest Pros control over who is managing the franchise location.
It is also important to note that Clear Pest Pros requires the franchisee to ensure that all Managing Owners, Designated General Managers, and sales/account management employees sign non-disclosure and confidentiality agreements at the start of their employment. These agreements must be specified or approved by Clear Pest Pros and prevent employees from disclosing trade secrets, customer lists, or other confidential information about the Clear Pest Pros system. This further protects Clear Pest Pros's confidential information and proprietary knowledge.