What agreement must remaining owners of a Clear Pest Pros franchise sign?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
Before attending the Initial Training and/or upon any change to the legal entity ownership, you must submit to us a corporate resolution, or similar action, which states the name of the corporation or LLC, the legal names of all of the partners or shareholders, the percentage of ownership that each member controls, their place of residence and their agreement to be bound by the terms of the Franchise Agreement. In the case of multiple owners, you must submit a dispute resolution procedure acceptable to us in our sole discretion that states what you will do in the event that there is a conflict between any owners of the franchisee entity. In addition, at all times, the owners who have executed the Franchise Agreement must own 100% of the ownership interest in the franchisee entity. The remaining owners must sign a written confidentiality and non-compete agreement in the form we prescribe.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Clear Pest Pros Franchise Disclosure Document, in cases where there are remaining owners of the franchise, those owners must sign a written confidentiality and non-compete agreement in a form prescribed by Clear Pest Pros. This agreement ensures that the remaining owners will not disclose confidential information or compete with the Clear Pest Pros business.
This requirement is in place to protect Clear Pest Pros's interests and maintain the integrity of its franchise system. The confidentiality aspect prevents the leakage of trade secrets, customer lists, and operational know-how, while the non-compete clause restricts the owners from engaging in any competing business ventures that could harm the Clear Pest Pros franchise.
Prospective franchisees should carefully review the specific terms of the confidentiality and non-compete agreement to understand the full scope of their obligations. It is also important to note that the agreement must be in a form prescribed by Clear Pest Pros, giving the franchisor control over the terms and conditions. Franchisees should seek legal counsel to fully understand the implications of these agreements before signing the Franchise Agreement.