What is the defined territory for the Clear Pest Pros business operation mentioned in the agreement?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
Territory: The specific area where the Clear Pest Pros Business is to be operated, which consists of a set of zip codes.
C. AWARD OF FRANCHISE.
You have applied for a franchise to own and operate a Clear Pest Pros Business. Subject to all of the terms and conditions of this Agreement, we hereby award you a franchise (the "Franchise") to operate a Clear Pest Pros Business utilizing the System and the Marks in the Territory that you and we have agreed to as described on the Summary Page and in Section 1.D below. We will not allow another Clear Pest Pros franchisee or Company Store to perform work within your Territory, except as outlined in Section 1.D below, unless you are not in full compliance with this Agreement.
The Franchise Agreement grants you the right to operate the Clear Pest Pros Business only within the Territory defined in the Franchise Agreement.
The term of the franchise will be ten (10) years (the "Initial Term") commencing on the date of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the territory granted to a franchisee is a specific area defined by a set of zip codes. The Franchise Agreement grants the franchisee the right to operate their Clear Pest Pros business exclusively within this designated territory. Clear Pest Pros will not allow another franchisee or a company-owned store to operate within the franchisee's territory, provided the franchisee remains in full compliance with the Franchise Agreement.
The agreement emphasizes that the franchisee must establish and operate the Clear Pest Pros business within the protected territory, which is identified in the Summary Page of the agreement. The franchisee must also select a business office site within this territory, subject to the franchisor's approval. Operating outside the designated territory without prior written approval from Clear Pest Pros can result in fees or even termination of the agreement. Specifically, advertising, establishing an office, or servicing customers outside of the assigned territory can lead to a fee of either $500 or the total job invoice amount for the unauthorized service.
Clear Pest Pros retains the right to establish other Clear Pest Pros businesses outside of the franchisee's territory, and these businesses are subject to the same marketing restrictions when servicing within the franchisee's territory. Additionally, Clear Pest Pros reserves the right to establish regional and national account relationships, even if the offices of these accounts are located within a franchisee's territory. This means that while franchisees have a protected territory, Clear Pest Pros can still pursue larger accounts that may overlap with that territory.