How will the Brand Marketing Fund be used by Clear Pest Pros?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, we reserve the right to establish a brand marketing fund (the "Brand Marketing Fund") for the common benefit of System franchisees. When we initiate the Brand Marketing Fund, you must contribute two percent (2%) of your Gross Sales monthly to the Brand Marketing Fund (the "Brand Marketing Fee") in the manner we prescribe. This amount is uniform for all franchisees.
We will use the Brand Marketing Fund, in our sole discretion, to develop, produce and distribute national, regional and/or local advertising and to create advertising materials and public relations programs, which promote, in our sole judgment, the services offered by Clear Pest Pros franchisees. We have the sole right to determine contributions and expenditures from the Brand Marketing Fund, or any other advertising program, and the sole authority to determine, without limitation, the selection of the advertising materials and programs; provided, however, that we will make a good faith effort to expend Brand Marketing Fund in the general best interests of the System on a national or regional basis. We do not have any obligation to spend any amount in your Territory specifically.
We may use the Brand Marketing Fund to satisfy any and all costs of maintaining, administering, directing, preparing, producing, and implementing advertising, including the cost of: (i) preparing, producing, and implementing television, radio, magazine and newspaper advertising campaigns, the cost of direct mail and outdoor billboard advertising; (ii) public relations activities and advertising agencies; (iii) developing and maintaining an Internet website; and personnel and other departmental costs for advertising that we internally administer or prepare. Nevertheless, we acknowledge that not all System franchisees will benefit directly or on a pro rata basis from such expenditures. While we do not anticipate that any part of the Brand Marketing Fund will be used for advertising which is principally a solicitation for franchisees, we reserve the right to use the Brand Marketing Fund for public relations or recognition of the "Clear Pest Pros" brand, for the creation and maintenance of a website, a portion of which can be used to explain the franchise offering and solicit potential franchisees, and to include a notation in any advertisement indicating "Franchises Available."
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the Brand Marketing Fund is established for the common benefit of franchisees. When initiated, franchisees must contribute 2% of their gross sales monthly to this fund, known as the Brand Marketing Fee. This contribution percentage is uniform across all franchisees. Clear Pest Pros has sole discretion in determining how the Brand Marketing Fund is spent.
The Brand Marketing Fund will be used to develop, produce, and distribute national, regional, and/or local advertising, as well as to create advertising materials and public relations programs. These efforts are intended to promote the services offered by Clear Pest Pros franchisees. Clear Pest Pros retains the sole authority to select advertising materials and programs, and will make a good faith effort to expend the Brand Marketing Fund in the general best interests of the System on a national or regional basis. However, there is no obligation to spend any amount specifically in a franchisee's territory.
The FDD specifies that the Brand Marketing Fund may cover costs related to various advertising mediums such as television, radio, magazine, and newspaper campaigns, as well as direct mail and outdoor billboard advertising. It can also be used for public relations activities, advertising agencies, website development and maintenance, and personnel costs for internally administered advertising. Clear Pest Pros may also reimburse itself for costs related to website development, maintenance, and updates from the Brand Marketing Fund. While the fund is not primarily intended for franchisee recruitment, it can be used for public relations, brand recognition, website maintenance, and to include franchise availability notices in advertisements. Franchisees should note that not all will directly or proportionally benefit from these expenditures.