Does the Clear Pest Pros franchise agreement confer any goodwill or other interest in the Marks to the franchisee?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
4. MARKS.
A. OWNERSHIP AND GOODWILL OF MARKS.
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- You acknowledge that we own and have all rights to the Marks.
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- Your right to use the Marks is derived only from this Agreement and is limited to your operation of the Clear Pest Pros Business in accordance and in compliance with this Agreement and all System Standards we prescribe from time to time during its term.
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- You promise to use only the Marks that we designate in writing, and to use them only in the manner that we authorize.
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- You agree that your use of the Marks, and any goodwill established by this use, will be exclusively for our benefit and that this Agreement does not confer any goodwill or other interest in the Marks upon you (other than the right to operate a Clear Pest Pros Business under this Agreement). Upon expiration or termination of this Agreement, no monetary amount will be assigned as attributable to any goodwill associated with your use of the System and the Marks,
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- All provisions of this Agreement applicable to the Marks apply to any additional proprietary trade and service marks and commercial symbols that we authorize you to use.
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- The right and license of the Marks awarded to you under this Agreement is nonexclusive, and we may:
- a. award other licenses and franchises for the Marks, in addition to those licenses and franchises already awarded;
- b. use the Marks in connection with marketing and selling of any products and services as we deem appropriate; and
c. develop and establish other systems using the Marks, similar proprietary marks, or any other proprietary marks, and grant licenses thereto without providing any rights therein to you.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Clear Pest Pros Franchise Disclosure Document, the franchise agreement does not confer any goodwill or other interest in the Marks to the franchisee. The agreement specifies that Clear Pest Pros owns all rights to the Marks, and the franchisee's right to use them is solely derived from the franchise agreement. This right is limited to the operation of the Clear Pest Pros Business in compliance with the agreement and all System Standards.
The agreement explicitly states that the franchisee's use of the Marks, and any goodwill established through that use, will be exclusively for the benefit of Clear Pest Pros. It clarifies that the franchise agreement does not grant the franchisee any goodwill or other interest in the Marks beyond the right to operate the business under the agreement. Upon expiration or termination of the agreement, no monetary amount will be assigned to any goodwill associated with the franchisee's use of the System and the Marks.
This is a common arrangement in franchising, where the franchisor retains ownership of the brand and associated goodwill. This ensures consistency and protects the brand's value across all franchise locations. Prospective Clear Pest Pros franchisees should understand that they are building goodwill for the Clear Pest Pros brand, not for themselves as individual business owners. This is an important consideration when evaluating the long-term value of the franchise opportunity.