Does the Clear Pest Pros franchise agreement allow for exceptions to the restrictions on transfer?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
D. YOUR DEATH OR DISABILITY; DIVORCE.
Upon your death or disability (or the death or disability of an owner of 33% or more of Franchisee, (referred to in this document as "your death or disability")) the executor, administrator, conservator, guardian, or other personal representative of Franchisee must transfer your interest in this Agreement or in Franchisee, in accordance with Sections B and C above, to a third party within a reasonable amount of time, but not to exceed six (6) months. During this time between the death and disability and the transfer required by this Section, the Clear Pest Pros Business must be operated in full compliance with this Agreement, as set forth in the next paragraph. The transfer will be subject to all of the terms and conditions applicable to transfers that are contained in this Section.
In the event of the Designated General Manager's death or disability, and before a transfer of his/her interests in this Agreement, another owner of Franchisee, or the Designated General Manager's spouse, child, or parent may temporarily operate the Clear Pest Pros Business only if 1) this party otherwise would qualify as a transferee, 2) personally manages the business on a full time basis, 3) is approved by the Franchisor, 4) successfully completes our Training Program as described in Section 3.A, and 5) signs an assignment and assumption of the Franchise Agreement or the then-current form of franchise agreement, if applicable. If no qualified person applies to Franchisor to operate the Clear Pest Pros Business in the interim, Franchisor shall have the right to appoint a representative or another franchisee to operate it upon giving notice to the executor.
For purposes of this Section, disability is defined as a condition that materially impairs your ability to operate the Clear Pest Pros Business in accordance with this Agreement for a period of thirty (30) or more consecutive days or sixty (60) or more days in a calendar year.
You will promptly notify us of any divorce proceedings that may result in a Transfer and tender the right of first refusal required in Section 10.C above. If we do not exercise such right, you must request our consent to any Transfer, and comply with the Transfer conditions set forth above in Section 10.B.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 FDD, the Clear Pest Pros franchise agreement outlines specific conditions regarding the transfer of ownership, with some exceptions. In the event of the death or disability of the franchisee (or an owner with 33% or more interest), the representative of the franchisee's estate must transfer the interest within six months, adhering to the standard transfer terms. During this interim period, the Clear Pest Pros business must continue to operate in full compliance with the agreement.
An exception is made if another owner, the Designated General Manager's spouse, child, or parent can temporarily operate the business under certain conditions. These conditions include being qualified as a transferee, managing the business full-time, receiving franchisor approval, completing the required training, and signing the necessary agreements. If no qualified person is available, Clear Pest Pros has the right to appoint a representative or another franchisee to operate the business.
In the case of divorce proceedings that may result in a transfer, the franchisee must notify Clear Pest Pros and offer the right of first refusal. If Clear Pest Pros waives this right, the franchisee must still request consent for any transfer and comply with the standard transfer conditions. These provisions ensure that Clear Pest Pros maintains control over who operates its franchises, while also providing some flexibility in cases of death, disability, or divorce.