Besides the franchisee, who else is bound by the Clear Pest Pros covenant not to compete?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of 24 months from the time of expiration or termination of this Agreement, you and your owners and, if applicable, your Designated General Manager, shall not (a) engage as an owner, shareholder, partner, director, officer, employee, consultant, salesperson, representative, or agent or in any other capacity in any business offering pest management for all manner of ants, spiders, roaches, stinging pests, flying pests and rodents on a recurring and/or one time basis, and other related services, (b) solicit business from Customers of your former Clear Pest Pros Business
or contact any of our suppliers or vendors for any competitive business purpose, or (c) divert or attempt to divert any business or Customer of the Clear Pest Pros Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks or the System or engage in any business relationship with any contacts with Customers or former Customers of the Clear Pest Pros Business, whether with respect to collection of accounts receivable, or to provide them services, or for any other purpose whatsoever, within:
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- the Territory as defined in this Agreement;
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- the geographic area encompassed by the Territories of any Clear Pest Pros franchisees, Company Stores, or any other Clear Pest Pros business operator, as of the date of the termination or expiration of this Agreement; or
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- a geographic area that is contained in a circle having a radius of 50 miles outward from the outside boundary of the Territory as defined in this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, in addition to the franchisee, the covenant not to compete also applies to the franchisee's owners and, if applicable, their Designated General Manager. This restriction is in effect for a period of 24 months following the expiration or termination of the Franchise Agreement.
During this 24-month period, these individuals are prohibited from engaging in any business offering pest management services similar to those provided by Clear Pest Pros. This includes being involved as an owner, shareholder, partner, director, officer, employee, consultant, salesperson, representative, or agent in any such competing business. The non-compete extends to soliciting business from former Clear Pest Pros customers or contacting the company's suppliers or vendors for competitive purposes.
The covenant not to compete covers the territory defined in the Franchise Agreement, the geographic areas of other Clear Pest Pros franchisees or company stores, and a 50-mile radius extending outward from the boundary of the franchisee's territory. This comprehensive restriction aims to protect Clear Pest Pros's market share, customer relationships, and proprietary information.
Furthermore, if a franchisee sells their Clear Pest Pros franchise, as a condition of Clear Pest Pros approving the purchaser as a new franchisee, the seller must agree not to compete for 24 months after the sale. This non-compete agreement prevents the seller from providing pest management services within a 50-mile radius of the purchased territory. This ensures a smooth transition and protects the new franchisee's investment.