factual

What is the definition of 'Minimum Gross Sales' for a Clear Pest Pros Business?

Clear_Pest_Pros Franchise · 2025 FDD

Answer from 2025 FDD Document

You acknowledge and agree that we have awarded you this Clear Pest Pros Business and Territory with the expectation that you will be able to develop a Clear Pest Pros Business that will achieve a minimum level of monthly Gross Sales (the "Minimum Gross Sales") in the Territory. Beginning in the 12th month of operations the Business will be required to meet the following minimum monthly Gross Sales requirements (the "Minimum Gross Sales Requirement") during the Term of this Agreement:

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

What This Means (2025 FDD)

According to Clear Pest Pros' 2025 Franchise Disclosure Document, Minimum Gross Sales is defined as a minimum level of monthly Gross Sales that the business is expected to achieve in its territory. Beginning in the 12th month of operations, a Clear Pest Pros business is required to meet the Minimum Gross Sales Requirement during the term of the Franchise Agreement.

Clear Pest Pros monitors franchisees' gross sales to calculate royalties and evaluate performance. If a franchisee fails to meet the Minimum Gross Sales Requirement for any consecutive three-month period, Clear Pest Pros reserves the right to terminate the Franchise Agreement. Additionally, if a franchisee does not achieve the required Minimum Gross Sales after 12 months in operation, Clear Pest Pros may collect a royalty equal to what would have been assessed had the franchisee achieved the Minimum Gross Sales, or the Minimum Royalty, whichever is greater.

For a prospective Clear Pest Pros franchisee, understanding and meeting the Minimum Gross Sales Requirement is critical for maintaining the franchise agreement and avoiding potential termination. Franchisees should carefully review the specific Minimum Gross Sales figures and related requirements outlined in their Franchise Agreement and seek clarification from Clear Pest Pros on any aspects they do not fully understand. Furthermore, franchisees should develop a comprehensive business plan that includes strategies for achieving and exceeding the Minimum Gross Sales Requirement, taking into account local market conditions and competition.

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.