Is the Designated Manager of a Clear Pest Pros Business required to have an ownership interest?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
You must at all times faithfully, honestly, and diligently perform your obligations under the Franchise Agreement. Except as stated herein, you must designate at least one managing owner (the "Managing Owner") who will be our primary individual contact with your Clear Pest Pros Business and who we will approve in our sole discretion. A Managing Owner may, in our sole discretion, serve as the Managing Owner of more than one Clear Pest Pros Business that is owned by you; provided, however, that we may, in our sole discretion, require you to designate a person who will serve as the primary individual contact for this Clear Pest Pros Business (the "Designated Manager"). We must approve of the Designated Manager in writing, which we may grant in our sole discretion. The Managing Owner and, if applicable, the Designated Manager, must successfully complete our JumpStart and Initial Training Programs as described in and required by the Franchise Agreement. The Designated Manager is not required to have an ownership interest in the Clear Pest Pros Business. The Designated Manager must sign our prescribed form of confidentiality and non-compete agreement. The Managing Owner or, if applicable, the Designated Manager must continuously exert their full-time and best efforts to manage, promote and enhance the Clear Pest Pros Business, and such other Clear Pest Pros Businesses as we permit in our sole discretion. Without our prior written permission, the Managing Owner and, if applicable, the Designated Manager, must not engage in any other business or activity that conflicts with their obligations to operate your Clear Pest Pros Business on a full-time, year-round basis. In the case of multiple owners, the owner with day-to-day responsibility and authority to run the Clear Pest Pros Business and with whom we will communicate shall be identified on the signature line as the first Managing Owner.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 56–57)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the Designated Manager is not required to have an ownership interest in the Clear Pest Pros Business. Clear Pest Pros may require franchisees to designate a person to serve as the primary individual contact for the business, called the Designated Manager. Clear Pest Pros must approve this Designated Manager in writing.
This is a potentially beneficial arrangement for franchisees who may not want to be involved in the day-to-day operations of the business or who may want to hire a manager to oversee operations. However, the Designated Manager must still be approved by Clear Pest Pros and must complete the required training programs. The Designated Manager must also sign a confidentiality and non-compete agreement.
It is important to note that the Managing Owner (if applicable) or the Designated Manager must continuously exert their full-time and best efforts to manage, promote, and enhance the Clear Pest Pros Business. They also cannot engage in any other business or activity that conflicts with their obligations to operate the Clear Pest Pros Business on a full-time, year-round basis without prior written permission from Clear Pest Pros.