Is the Designated Manager required to have an ownership interest in the Clear Pest Pros Business?
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 22 — CONTRACTS (FDD pages 67–68)
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 the franchisee to designate a person who will serve as the primary individual contact for the business, known as the "Designated Manager." Clear Pest Pros must approve this Designated Manager in writing, which they may grant at their sole discretion.
This distinction between a Managing Owner and a Designated Manager provides flexibility for franchisees. A Managing Owner must be an owner of the business, while a Designated Manager can be an employee or other individual without an ownership stake. Both the Managing Owner and the Designated Manager (if applicable) must successfully complete Clear Pest Pros's JumpStart and Initial Training Programs. The Designated Manager must also sign a confidentiality and non-compete agreement.
Both the Managing Owner and the Designated Manager are expected to exert full-time efforts to manage and promote the Clear Pest Pros Business. They are also restricted from engaging in other conflicting business activities without prior written permission from Clear Pest Pros. This ensures that the business receives their undivided attention and effort. In cases where there are multiple owners, the owner with day-to-day responsibility and authority will be identified as the first Managing Owner.