How does Clear Pest Pros determine whether to approve a Managing Owner or Designated Manager?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
TUAL OPERATION OF THE FRANCHISE BUSINESS**
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 and on-site supervisor 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.
Before attending the Initial Training and/or upon any change to the legal entity ownership, you must submit to us a corporate resolution, or similar action, which states the name of the corporation or LLC, the legal names of all of the partners or shareholders, the percentage of ownership that each member controls, their place of residence and their agreement to be bound by the terms of the Franchise Agreement. In the case of multiple owners, you must submit a dispute resolution procedure acceptable to us in our sole discretion that states what you will do in the event that there is a conflict between any owners of the franchisee entity. In addition, at all times, the owners who have executed the Franchise Agreement must own 100% of the ownership interest in the franchisee entity. The remaining owners must sign a written confidentiality and non-compete agreement in the form we prescribe.
The owners of the franchised business and their spouses must personally guarantee the Clear Pest Pros Business. The Managing Owner, Designated Manager and/or key employees will need to execute non-disclosure and confidentiality agreements that we have approved. (Section 6.C. of the Franchise Agreements). We do not have a standard form, as laws vary between states; however, we do require that such agreements will prohibit disclosure, by the employee to any other person or legal entity, of any trade secrets, customer lists, or other information, knowledge, or know-how regarding the System or the operation of the Clear Pest Pros Business, which is deemed confidential or proprietary by us. Such employee non-disclosure and confidentiality agreements will, to the fullest extent permitted by applicable law, prevent employees from servicing or soliciting any of the customers of your Clear Pest Pros Business, except in their capacities as employees of the Clear Pest Pros Business. The agreements to be signed by a partner, spouse, or designated Managing Owner, will also need to include a non-compete agreement, which must comply with your state law. A fully executed copy of each agreement is to be sent to us.
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 approval of a Managing Owner or Designated Manager is at Clear Pest Pros's sole discretion. Franchisees must designate at least one Managing Owner who will be the primary contact with Clear Pest Pros. Clear Pest Pros may require the franchisee to designate a Designated Manager to be the primary individual contact for the business. Clear Pest Pros must approve of the Designated Manager in writing, which they may grant in their sole discretion.
The Managing Owner and, if applicable, the Designated Manager, must successfully complete Clear Pest Pros's JumpStart and Initial Training Programs. The Designated Manager is not required to have an ownership interest in the Clear Pest Pros Business but must sign a confidentiality and non-compete agreement. Both the Managing Owner and the Designated Manager must continuously exert their full-time and best efforts to manage, promote, and enhance the Clear Pest Pros Business and must not engage in any other conflicting business activities without prior written permission from Clear Pest Pros.
Before attending the Initial Training or upon any change to the legal entity ownership, the franchisee must submit a corporate resolution or similar action. This document should state the name of the corporation or LLC, the legal names of all partners or shareholders, the percentage of ownership each member controls, their place of residence, and their agreement to be bound by the terms of the Franchise Agreement. In cases with multiple owners, a dispute resolution procedure acceptable to Clear Pest Pros must be submitted, outlining how conflicts between owners will be resolved. The owners who have executed the Franchise Agreement must own 100% of the ownership interest in the franchisee entity, and the remaining owners must sign a written confidentiality and non-compete agreement in the form prescribed by Clear Pest Pros.
The owners and their spouses must personally guarantee the Clear Pest Pros Business. The Managing Owner, Designated Manager, and key employees will need to execute non-disclosure and confidentiality agreements approved by Clear Pest Pros. These agreements will prohibit the disclosure of trade secrets, customer lists, or other confidential information regarding the System or the operation of the Clear Pest Pros Business. These agreements also prevent employees from servicing or soliciting customers of the Clear Pest Pros Business, except in their capacities as employees of the business. Agreements signed by a partner, spouse, or designated Managing Owner must also include a non-compete agreement that complies with state law, and a fully executed copy of each agreement must be sent to Clear Pest Pros.