By what date will any additional minimum amounts due be settled for a Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
Any additional minimum amounts due will be settled by March 31 of the subsequent calendar year, at our discretion.
Gross sales minimums included herein are reflected on a per territory basis.
For purposes of paying the Royalty, monthly reports are due by the 5th day of each month and payment is due on the 10th.
Royalties are payment for the use of the Marks, System, Territory, and Manuals.
We have established a Brand Marketing Fund for the common benefit of System franchisees.
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.
We may also create regional or local advertising cooperatives, which you may be required to participate in, if developed.
If developed in your area, you may be required to contribute up to two percent (2%) of Gross Sales to such cooperative.
Source: Item 6 — OTHER FEES (FDD pages 20–28)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, any additional minimum amounts due will be settled by March 31 of the subsequent calendar year, at the franchisor's discretion. This refers to situations where a franchisee fails to meet the minimum monthly gross sales requirements outlined in Item 6 of the FDD.
Clear Pest Pros specifies minimum monthly gross sales targets that increase over time. For months 13 to 24, the minimum is $5,000 per month; for months 25 to 36, it's $7,500 per month; for months 37 to 48, it's $10,000 per month; and for months greater than 48, it increases to $15,000 per month. If a franchisee doesn't meet these minimums, Clear Pest Pros has the right to collect a royalty payment as if the franchisee had met the minimum sales level.
However, Clear Pest Pros waives enforcement of these minimums during the first and fourth calendar quarters (January-March and October-December), provided the franchisee meets the annual minimum gross sales target. This provides some flexibility for seasonal fluctuations in business. The settlement date of March 31 ensures that any shortfall from the previous year is reconciled and paid, if Clear Pest Pros chooses to enforce this provision.