What determines the extent to which Clear Pest Pros can collect transfer fees?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
ement, (b) you will not hold any security interest reserved in the business, and (c) you will enter into a comfort letter assuring us that the transferee will meet its obligations under the Franchise Agreement, and reaffirming your guaranty of the Franchise Agreement.
8. you pay us:
a. our then-current Transfer Fee, as published in our Operations Manual. The Transfer Fee is due upon our preparation of the required transfer documentation (consent to transfer and assignment agreement and/or preparation of transferee's franchise agreement), and is non-refundable at such time;
b. all Royalties for completed jobs up through the date of closing, fees, amounts owed under any promissory notes with us, Late Payment Fees, Late Report Fees, NSF Fees, Interest Fees, and all other fees or amounts owed to us, plus interest; and
c. Our then-current Referral Fee, all commissions, broker fees or other similar expenses if: (i) you list the Clear Pest Pros Business with a broker, lead referral network or similar entity; or (ii) the transferee is referred to you or us by a broker, lead referral network or similar entity;
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- the transferee has successfully completed our Initial Training program;
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- the transferee must assume and agree to be bound by all outstanding obligations to customers and clients of the Clear Pest Pros Business;
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- you, your principals, and the transferee (if we have a prior relationship with the transferee) sign a general release, in a form satisfactory to us, of any and all claims against us and our shareholders, officers, directors, employees, and agents (such requirement to sign a general release is subject to change in our sole discretion);
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- we have approved the material terms and conditions of the transfer , the form of purchase and sale agreement, and determined that the price and terms of payment will not adversely affect the transferee's operation of the Clear Pest Pros Business;
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- in the event of an approved transfer to a wholly owned corporation or limited liability company, we will require you to own and control at least 100% of the issued and outstanding capital stock or other ownership interest;
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- you must have attended Initial Training and your business must be open in order to transfer the Clear Pest Pros Business;
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Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, the transfer fee is determined by the then-current transfer fee as published in their Operations Manual. This fee is due upon preparation of the required transfer documentation, such as the consent to transfer and assignment agreement or the preparation of the transferee's franchise agreement, and is non-refundable once these documents are prepared.
In the event that a franchisee is awarded their Clear Pest Pros business as a result of purchasing the assets of a business owned by a previous franchisee, the new franchisee promises to pay Clear Pest Pros the then-current transfer fee if it is not paid by the predecessor. If the franchise agreement is a transfer term, the initial franchise fee is waived; however, the selling owner will need to pay the then-current transfer fee as set forth in the agreement.
Clear Pest Pros also outlines several conditions that must be met for a transfer to be approved. These include the transferee completing the initial training program, assuming all outstanding obligations to customers, and signing a general release of claims against Clear Pest Pros. Additionally, Clear Pest Pros must approve the terms of the transfer, and the transferee must obtain all necessary permits and licenses. Clear Pest Pros has the right to require the transferee to purchase all or a portion of the Initial Package, new or refurbished equipment, inventory, new vehicles/vehicle wraps, and complete remodeling, refurbishing, renovation or upgrades required by Franchisor, etc. to ensure the Clear Pest Pros Business is in compliance with our current System Standards and in well-maintained condition.