What is the effect of the assignment on the Clear Pest Pros franchisee's rights under the lease?

Based on the 2025 Clear Pest Pros Franchise Disclosure Document, the franchisee's rights under a lease are contingent upon the lessor's consent to the proposed transfer. Specifically, Item 22, section 10.B.17 states that "to the extent required by the terms of any leases or other agreements, the lessors or other parties must have consented to the proposed transfer." This means that if the lease agreement for the Clear Pest Pros business location requires the lessor's approval for any transfer of the lease, the franchisee must obtain this consent as a condition of the franchise transfer.

This requirement ensures that the new franchisee or transferee is approved by the landlord, maintaining the legal standing of the lease agreement. Without the lessor's consent, the transfer may not be valid, potentially jeopardizing the business location. The franchisor, Clear Pest Pros, mandates compliance with this condition to protect the integrity of the franchise system and ensure smooth transitions during ownership changes.

For a prospective Clear Pest Pros franchisee, this underscores the importance of carefully reviewing the terms of their lease agreement and securing lessor consent well in advance of any planned transfer. Failing to do so could delay or even prevent the transfer, causing significant disruptions to the business. It is also important to note that Clear Pest Pros must approve the transfer, and the proposed transferee shall be evaluated for approval by Clear Pest Pros based on the same criteria as is currently being used to assess new franchisees.

In summary, Clear Pest Pros requires adherence to lease terms regarding transfer, necessitating lessor consent to safeguard the franchisee's rights and maintain operational stability. Franchisees should proactively manage lease-related obligations to facilitate seamless franchise transitions.