What is the definition of the Brand Marketing Fee for Clear Pest Pros?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established a Brand Marketing Fund (the "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. This amount is uniform for all franchisees. Company-owned locations may, but are not required to, contribute to the Brand Marketing Fund at the same rate.
We use the Brand Marketing Fees, 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 Fees 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, newspaper, and online 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 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 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 40–49)
What This Means (2025 FDD)
According to the 2025 FDD, Clear Pest Pros requires franchisees to contribute to a Brand Marketing Fund. The Brand Marketing Fee is defined as a mandatory contribution of two percent (2%) of the franchisee's Gross Sales, paid monthly. This fee is uniform across all franchisees within the Clear Pest Pros system. Company-owned locations have the option, but are not obligated, to contribute to the Brand Marketing Fund at the same rate.
The Brand Marketing Fund is managed at the sole discretion of Clear Pest Pros, which decides how the fees are used for advertising and public relations programs. These programs are intended to promote the services offered by Clear Pest Pros franchisees. While Clear Pest Pros aims to use these fees in the best interest of the entire system on a national or regional level, there is no guarantee that every franchisee will directly benefit from the expenditures, nor is there any obligation to spend money specifically in a franchisee's territory.
The FDD specifies that the Brand Marketing Fund can cover various advertising costs, including television, radio, magazine, newspaper, and online campaigns, as well as public relations activities and website maintenance. Clear Pest Pros also reserves the right to use the fund for public relations, brand recognition, website maintenance, and even franchise solicitation. Clear Pest Pros will provide an annual statement of contributions and expenditures for the Brand Marketing Fund within 120 days of the fiscal year's end, available to franchisees upon written request. The Brand Marketing Fund does not have to be independently audited.