What is the 'Franchise Agreement' referring to in the Clear Pest Pros termination agreement?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement grants you the right to operate the Clear Pest Pros Business only within the Territory defined in the Franchise Agreement.
The term of the franchise will be ten (10) years (the "Initial Term") commencing on the date of this Agreement.
You must at all times faithfully, honestly, and diligently perform your obligations under the Franchise Agreement. Except as stated herein, you must designate at least one managing owner (the "Managing Owner") who will be our primary individual contact with your Clear Pest Pros Business and who we will approve in our sole discretion. A Managing Owner may, in our sole discretion, serve as the Managing Owner of more than one Clear Pest Pros Business that is owned by you; provided, however, that we may, in our sole discretion, require you to designate a person who will serve as the primary individual contact for this Clear Pest Pros Business (the "Designated Manager"). We must approve of the Designated Manager in writing, which we may grant in our sole discretion. The Managing Owner and, if applicable, the Designated Manager, must successfully complete our JumpStart and Initial Training Programs as described in and required by the Franchise Agreement. The Designated Manager is not required to have an ownership interest in the Clear Pest Pros Business. The Designated Manager must sign our prescribed form of confidentiality and non-compete agreement. The Managing Owner or, if applicable, the Designated Manager must continuously exert their full-time and best efforts to manage, promote and enhance the Clear Pest Pros Business, and such other Clear Pest Pros Businesses as we permit in our sole discretion. Without our prior written permission, the Managing Owner and, if applicable, the Designated Manager, must not engage in any other business or activity that conflicts with their obligations to operate your Clear Pest Pros Business on a full-time, year-round basis. In the case of multiple owners, the owner with day-to-day responsibility and authority to run the Clear Pest Pros Business and with whom we will communicate shall be identified on the signature line as the first Managing Owner.
Before attending the Initial Training and/or upon any change to the legal entity ownership, you must submit to us a corporate resolution, or similar action, which states the name of the corporation or LLC, the legal names of all of the partners or shareholders, the percentage of
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' outlines the terms and conditions under which Clear Pest Pros grants a franchisee the right to operate a Clear Pest Pros business. Item 22 of the FDD discusses various aspects of the Franchise Agreement, including the rights it grants, its term length, and conditions for renewal or termination.
The Franchise Agreement grants the franchisee the right to operate a Clear Pest Pros business within a specific territory, which is defined as a set of zip codes. The initial term of the franchise is ten years, commencing on the date of the agreement. The franchisee is expected to perform their obligations under the Franchise Agreement faithfully and diligently. A managing owner, and potentially a designated manager, must complete the required training programs.
The agreement also covers conditions for termination, both automatic and with notice. Automatic termination can occur without notice under certain conditions, such as bankruptcy or unauthorized transfer of the agreement. Clear Pest Pros can terminate the agreement with notice if the franchisee's managing owner or designated manager fails to complete initial training, if the franchisee fails to commence operations within a specified timeframe, or if the franchisee makes material misrepresentations.
Furthermore, the Franchise Agreement includes post-termination restrictions. For 24 months after the termination or expiration of the agreement, the franchisee and their owners are restricted from engaging in similar pest management businesses within the territory defined in the Franchise Agreement, or within the territories of other Clear Pest Pros franchisees or company stores. They are also prohibited from soliciting business from former Clear Pest Pros customers or engaging in business relationships with contacts of the former Clear Pest Pros business.