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What conditions must a Clear Pest Pros franchisee meet to be awarded a Renewal Term?

Clear_Pest_Pros Franchise · 2025 FDD

Answer from 2025 FDD Document

Upon the expiration of this Agreement, provided that during its term you complied substantially with its provisions, including the timely payment of all fees and royalties, you may continue your Clear Pest Pros Business for one (1) additional term of ten (10) years (a "Renewal Term" (as previously defined)).

In order to be awarded a Renewal Term, you must:

If you satisfy all of the other conditions to the awarding of a Renewal Term, you promise to sign the then-current franchise agreement and any ancillary agreements for Clear Pest Pros Businesses, which may include a different Royalty and/or Territory. You and we further promise to sign a mutual general release, in a form satisfactory to us, of any and all claims against either of us and our respective shareholders, officers, directors, employees, agents, successors, and assigns. Such requirement to sign a general release is subject to change in our sole discretion.

Notwithstanding any provision to the contrary, at our request, you will promise to upgrade and remodel the Clear Pest Pros Business at your sole expense to conform to the then-current Operations Manual (the completion of such upgrades shall be a condition of you receiving such Renewal Term). Further, you must submit proof to us that you have the right to operate the Clear Pest Pros Business at the Office Site for the Renewal Term.

If this is a renewal term ("Renewal Term"), the Initial Franchise Fee is waived. However, you must pay the then-current renewal fee, as set forth in Section 11.D of this Agreement. As a condition to entering into a Renewal Term, we may require you to purchase new or additional equipment, remodel or refurbish your vehicle or retail space, or perform other renovations, at your sole expense.

If this is a Renewal Term, you will be required to meet the Minimum Monthly Gross Sales requirement for the greater than 48 month level for the entirety of the Renewal Term in year 1 of the Renewal Term, and Gross Sales must continue to grow at a rate of at least three percent (3%) per year in each year of the Renewal Term

Source: Item 22 — CONTRACTS (FDD pages 67–68)

What This Means (2025 FDD)

According to the 2025 Clear Pest Pros Franchise Disclosure Document, a franchisee may be able to continue their Clear Pest Pros business for one additional term of ten years, provided that they have substantially complied with the provisions of the agreement during its term, including the timely payment of all fees and royalties.

To be awarded a Renewal Term, a Clear Pest Pros franchisee must sign the then-current franchise agreement and any ancillary agreements for Clear Pest Pros Businesses, which may include a different Royalty and/or Territory. The franchisee and Clear Pest Pros must also sign a mutual general release, in a form satisfactory to Clear Pest Pros, of any and all claims against either party and their respective affiliates. This requirement to sign a general release is subject to change at Clear Pest Pros's discretion.

At Clear Pest Pros's request, the franchisee will promise to upgrade and remodel the Clear Pest Pros Business at their sole expense to conform to the then-current Operations Manual, and the completion of such upgrades shall be a condition of receiving such Renewal Term. Further, the franchisee must submit proof to Clear Pest Pros that they have the right to operate the Clear Pest Pros Business at the Office Site for the Renewal Term. If this is a Renewal Term, the franchisee will be required to meet the Minimum Monthly Gross Sales requirement for the greater than 48 month level for the entirety of the Renewal Term in year 1 of the Renewal Term, and Gross Sales must continue to grow at a rate of at least three percent (3%) per year in each year of the Renewal Term. The Initial Franchise Fee is waived for a renewal term, but the franchisee must pay the then-current renewal fee, as set forth in Section 11.D of this Agreement. As a condition to entering into a Renewal Term, Clear Pest Pros may require the franchisee to purchase new or additional equipment, remodel or refurbish their vehicle or retail space, or perform other renovations, at the franchisee's sole expense.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.