What is the due date for the Royalty fee for Clear Pest Pros franchisees?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 7% of Gross Sales, for the first 12 months of operation Beginning in month 7, the greater of 7% of Gross Sales, or 7% of the Minimum Gross Sales Requirement, which shall be no less than $700 | This fee is due by automatic debit on the 10th day of each month for Gross Sales generated during the preceding month. | See Notes 1 through 5. In addition to the Minimum Royalty, the Minimum Gross Sales requirement begins in month 13 of operations. If you fail to achieve the Minimum Gross Sales, we may collect the greater of the $700 per month (the "Minimum Royalty") or 7% of the Minimum Gross Sales Requirement. |
| Brand Marketing Fee | 2% of Gross Sales. | Deducted monthly at the same time and in the same manner as the Royalty beginning in month 13 of your operation | Your contribution to our Brand Marketing Fund for the common benefit of System franchisees. See Note 6. |
| Technology Fee | $350 per month, per franchisee | Monthly | Fees for website hosting, email hosting, and other required technology or marketing related expenses. We reserve the right to increase this fee as determined by vendor(s), to include the cost to use our Call Center, and to charge an administration fee of up to 15% of the Technology Fee. |
| Software Fee | $750 per franchisee | Monthly | Fee for required software usage, covers up to 4 technicians. One-time set up fee is $650. |
Source: Item 6 — OTHER FEES (FDD pages 20–28)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, the Royalty fee is due by automatic debit on the 10th day of each month. This payment covers Gross Sales generated during the preceding month. For a Clear Pest Pros franchisee, this means that the royalty payment for all sales made in January, for example, will be automatically debited from their account on February 10th.
Clear Pest Pros requires franchisees to authorize automatic debits from their business checking account for all fees owed to them. This authorization must be submitted before the Clear Pest Pros Business opens, using a form attached to the Franchise Agreement as Exhibit D. This ensures timely payment of royalties and other fees.
It's important to note that Clear Pest Pros may periodically specify other dates for royalty payments. Additionally, if a franchisee transfers their Franchise Agreement to a new owner, all royalties for jobs completed before the transfer must be paid on the day of closing, regardless of whether the invoices have been fully paid. Similarly, upon termination of the Franchise Agreement, all royalties for jobs completed prior to termination are immediately due.