factual

Does Clear Pest Pros have any former franchisees?

Clear_Pest_Pros Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 22: CONTRACTS]

B. MARKS.

Upon the termination or expiration of this Agreement, you promise to:

    1. 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;
    1. 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;
    1. not hold yourself out or advertise in any context that you are a present franchisee or were a former franchisee of ours;
    1. 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;
    1. 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;
    1. 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;

[Item 22: CONTRACTS]

    1. After the Term of the Franchise Agreement. For a period of 24 months from the time of expiration or termination of this Agreement, you and your owners and, if applicable, your Designated General Manager, shall not: (a) engage as an owner, shareholder, partner, director, officer, employee, consultant, salesperson, representative, or agent or in any other capacity in any business offering pest management for all manner of ants, spiders, roaches, stinging pests, flying pests and rodents on a recurring and/or one time basis, and other related services to residential and commercial markets, (b) solicit business from Customers of your former Clear Pest Pros Business or contact any of our supplies or vendors for any competitive business purpose, or (d) divert or attempt to divert any business or Customer of the Clear Pest Pros Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks or the System or engage in any business relationship with any contacts with Customers or former Customers of the Clear Pest Pros Business, whether respect to collection of accounts receivable, or to provide them services, or for any other purpose whatever, within:
  • a.

The Territory defined in the Franchise Agreement;

  • b.

The geographic area encompassed by the Territories of any Clear Pest Pros franchisees, Company Stores, or any other Clear Pest Pros business operator, as of

the date of the termination or expiration of the Franchise Agreement; or

Source: Item 23 — RECEIPTS (FDD pages 68–233)

What This Means (2025 FDD)

The 2025 Franchise Disclosure Document for Clear Pest Pros does not explicitly state whether there are any former franchisees. However, it does include several clauses outlining post-termination obligations for franchisees. These clauses suggest that Clear Pest Pros anticipates the possibility of franchise terminations or expirations.

Specifically, the Franchise Agreement includes provisions that restrict a franchisee's activities after the agreement's term. For 24 months after the agreement expires or terminates, the franchisee is prohibited from engaging in similar pest management businesses, soliciting customers of their former Clear Pest Pros business, or diverting business from Clear Pest Pros. These restrictions apply within the franchisee's former territory and the territories of other Clear Pest Pros franchisees or company stores.

Additionally, upon termination or expiration of the Franchise Agreement, franchisees must comply with post-termination provisions, refrain from representing themselves as being connected to the Clear Pest Pros system, and cease any business relationship with customers or former customers of the Clear Pest Pros business. They must also assign accounts receivable to Clear Pest Pros for collection, and cease operating under any name that might confuse the public into thinking they are still part of Clear Pest Pros.

While these clauses indicate that Clear Pest Pros has considered the possibility of franchisees leaving the system, the FDD does not provide a specific number of former franchisees or details about the reasons for their departure. A prospective franchisee may want to ask Clear Pest Pros directly about the history of franchise terminations, non-renewals, and transfers to gain a clearer understanding of franchisee turnover.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.