Does Clear Pest Pros have a duty to collect assigned accounts receivable after a franchise termination?

According to Clear Pest Pros's 2025 Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee must assign all accounts receivable to Clear Pest Pros for collection, provided that all royalties and other payment obligations to Clear Pest Pros are not paid in full. In connection with this assignment, the franchisee appoints Clear Pest Pros as their attorney-in-fact to engage in collection activities and must refrain from engaging in these collection activities themselves.

Clear Pest Pros promises to employ good faith efforts to collect the accounts receivable, including commencing legal proceedings if deemed appropriate in their sole judgment. However, Clear Pest Pros has no duty or obligation to the franchisee to actually accomplish the collection of such accounts receivable. Any sums collected will be remitted to the franchisee after deducting all monies owed to Clear Pest Pros and their costs of collection.

This means that while Clear Pest Pros will make an effort to collect outstanding receivables, they are not obligated to successfully recover those funds. The franchisee bears the risk of uncollected accounts receivable, even after termination, and will only receive funds if Clear Pest Pros is successful in their collection efforts, after deducting any outstanding debts and collection costs. This arrangement protects Clear Pest Pros's interests while potentially leaving the franchisee with uncertainty regarding the recovery of outstanding payments after the franchise agreement ends.