From what duties and obligations is the Clear Pest Pros Franchise Owner released upon termination?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
B. MARKS.
Upon the termination or expiration of this Agreement, you promise to:
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- strictly comply with, observe, and abide by all of the post-termination provisions of this Agreement, including those as set forth in Sections 5, 6 and 13.D of this Agreement;
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- neither directly nor indirectly represent to the public that any other business you may then own or operate, is or was operated as, or was in any way connected to, the System;
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- not hold yourself out or advertise in any context that you are a present franchisee or were a former franchisee of ours;
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- immediately refrain from engaging in any business relationship with any contacts with Customers or former Customers of the Clear Pest Pros Business, whether with respect to collection of accounts receivable, providing Services, or for any other purpose whatsoever;
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- assign any and all accounts receivable to us for collection, unless all Royalties and other payment obligations to us are paid in full. In connection with this assignment, you appoint us as attorney-in-fact to engage in these collection activities and you specifically refrain from engaging in any of these collection activities. We promise to employ good faith efforts, including where appropriate in our sole and exclusive judgment the commencement of legal proceedings to collect the accounts receivable. We have no duty or obligation to you to accomplish the collection of such accounts receivable. We will remit to you any of these sums collected after first deducting all moneys owed to us and our costs of collection;
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- immediately cease operation under this Agreement and not operate or do business under any name or in any manner which might tend to give the general public the impression that you are operating a Clear Pest Pros Business, or any confusingly similar business;
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Clear Pest Pros Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, the franchisee is obligated to comply with post-termination provisions outlined in Sections 5, 6, and 13.D of the agreement. The franchisee cannot represent any other business as connected to the Clear Pest Pros system or advertise themselves as a current or former Clear Pest Pros franchisee. Franchisees must also cease all business relationships with customers or former customers of the Clear Pest Pros business.
Additionally, the franchisee must assign all accounts receivable to Clear Pest Pros for collection, unless all royalties and other payment obligations are paid in full. Clear Pest Pros is appointed as the attorney-in-fact for these collections and will remit any collected sums after deducting owed monies and collection costs. The franchisee must immediately cease operations under the agreement and avoid any actions that might mislead the public into thinking they are still operating a Clear Pest Pros business.
In the event of a renewal, both Clear Pest Pros and the franchisee promise to sign a mutual general release, which releases each party from any and all claims against the other, including their respective shareholders, officers, directors, employees, agents, successors, and assigns. This release covers any conceivable kind of claim, action, or cause of action, whether known or unknown, related to any acts or omissions occurring before the date of the release. This requirement to sign a general release is subject to change at Clear Pest Pros's discretion.