Does the Clear Pest Pros Brand Marketing Fund have to be independently audited?

According to Clear Pest Pros's 2025 Franchise Disclosure Document, the Brand Marketing Fund does not have to be independently audited. However, Clear Pest Pros will prepare an annual statement of contributions and expenditures for the fund, which will be available to franchisees upon written request. This statement must be prepared within 120 days of the end of the fiscal year.

While the Brand Marketing Fund isn't required to undergo an independent audit, Clear Pest Pros franchisees still have some visibility into how the funds are being managed. By requesting the annual statement, franchisees can review the contributions and expenditures, ensuring that the funds are being used in accordance with the agreement. This provides a degree of transparency, even without a formal audit.

It's important for prospective franchisees to understand the implications of not having an independently audited fund. While the franchisor is obligated to provide a statement, the lack of an audit means there is no independent verification of the accuracy and appropriateness of the fund's financial activities. This places a greater reliance on the franchisor's internal controls and good faith efforts in managing the fund. Franchisees should consider this when evaluating the overall financial management practices of Clear Pest Pros.