What constitutes 'Out-of-Territory Conduct' for a Clear Pest Pros franchisee?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
peration after which you must establish an Office Site in a commercial or industrial space within your Territory. We do not assist franchisees in confirming the premises to ordinances or codes.
You may only advertise the Business and provide services to customers located within the Territory unless you request and receive our prior written approval. If we approve your request to provide services outside of the Territory, which we may withhold for any reason, we may withdraw such approval at any time.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Clear Pest Pros Franchise Disclosure Document, 'Out-of-Territory Conduct' refers to advertising the business, establishing an office, or servicing customers outside of the franchisee's designated territory without prior written approval from Clear Pest Pros. A franchisee's territory is defined as the specific area, consisting of a set of zip codes, where the Clear Pest Pros Business is to be operated.
Engaging in Out-of-Territory Conduct is considered a default of the Franchise Agreement. If a Clear Pest Pros franchisee violates this rule, the franchisor may charge a fee. This fee is the greater of $500 or the total job invoice amount on the default job, referred to as the "Improper Marketing or Service Fee." In addition to monetary penalties, Clear Pest Pros retains the right to terminate the Franchise Agreement for such violations.
It is important to note that Clear Pest Pros reserves the right to approve or deny a franchisee's request to provide services outside of their territory, and can withdraw such approval at any time, for any reason. Furthermore, committing three or more instances of Out-of-Territory Conduct is grounds for termination of the agreement. This policy ensures that franchisees respect territorial boundaries and do not encroach upon other franchisees' or the company's service areas, maintaining market stability and brand consistency.