Is a Clear Pest Pros franchisee granted an exclusive territory?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
ritories in any given geographic area.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
12.2 Advertising and Servicing of Customers for Franchises
Within the Territory, you have the right to advertise and service any customer for the Services except as described in this section. However, you may not advertise via print, media, or targeted webbased advertising outside of the Territory without our approval; this includes distribution of materials at trade shows, home shows and similar locations that reference anything other than the Clear Pest Pros toll-free phone number or our home office address. Listings in membership rosters of organizations shall be considered advertising. Advertising or servicing outside of your Territory is a default under the Franchise Agreement and may carry a fine of the greater of (a) $500 or (b) 50% of job invoice amount on the default job, and/or termination of your Franchise Agreement.
Clear Pest Pros Businesses and Company Stores may not advertise within your Territory without your and our written approval. You may not advertise or service in any way, any customers outside the Territory, even if the area has not been awarded to another Clear Pest Pros Business or Company Store, without our prior written permission. All zip-codes that have not been awarded to a Clear Pest Pros Business or Company Store are corporately owned ("Clear Pest Pros Corporate Territory") and you may not advertise or provide Services there without our prior written permission.
Although we have not done so, we and our affiliates may sell products under the Marks within and outside the Territory through any method of distribution, although within your Territory it may not be through a Clear Pest Pros Business. This includes sales through such channels of distribution as the Internet, catalog sales, telemarketing, or other direct marketing sales (collectively, the "Alternative Distribution Channels"). You may not use Alternative Distribution Channels to make sales outside or inside the Territory and you may not receive compensation for our sales through Alternative Distribution Channels except as described in the following paragraph.
If we engage in electronic commerce through any Internet, World Wide Web, or other computer network site, or sell through any other Alternative Distribution Channel, and we receive orders for any System products or residential Services calling for delivery or performance in your Territory, we will offer the order to you at the price we establish. If you choose not to fulfill the order, if you do not meet the requirements, or if you are otherwise unable to fulfill the order, then we, or another Clear Pest Pros Business or Company Store may fulfill the order, and you will be entitled to no compensation in connection therewith.
We and our affiliates may use Alternative Distribution Channels to make sales within the Territory of products or services under trademarks different from the Marks you will use under the Franchise Agreement.
12.3 National or Regional Accounts ("NORAs")
We have the exclusive right to negotiate and enter into agreements or approve forms of agreement to provide services to National or Regional Account ("NORA") customers. We do not currently have NORAs at this time, but we may establish these relationships during the term of your Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. While a franchisee is assigned a protected territory defined by specific zip codes, Clear Pest Pros retains the right to allow other franchisees, company-owned outlets, or other distribution channels to operate within the same area. This means a Clear Pest Pros franchisee may face competition from various sources, including other franchisees and outlets controlled by Clear Pest Pros. The territory typically includes between 350,000 to 450,000 people, with a maximum of 500,000.
Despite the lack of exclusivity, franchisees have the right to advertise and service customers within their designated territory. However, Clear Pest Pros approval is required for advertising outside the territory via print, media, or targeted web-based advertising. Unauthorized advertising or servicing outside the territory can result in a fine of the greater of $500 or 50% of the job invoice amount, and/or termination of the Franchise Agreement. Clear Pest Pros Businesses and Company Stores may not advertise within a franchisee's territory without written approval from both the franchisee and Clear Pest Pros.
Clear Pest Pros also reserves the right to engage in alternative distribution channels, such as internet sales or telemarketing, within a franchisee's territory. While franchisees may be offered the opportunity to fulfill orders received through these channels, they are not guaranteed compensation if Clear Pest Pros or another franchisee fulfills the order. Additionally, Clear Pest Pros retains the right to establish and market to national or regional accounts (NORAs), even if their offices are located within a franchisee's territory.
If a Clear Pest Pros Business fails to achieve the required Minimum Gross Sales Requirement during any consecutive three-month period, Clear Pest Pros reserves the right to terminate the Franchise Agreement, modify the franchisee's Territory, or permit another franchisee or Company Store to provide Services in the Territory. There is no compensation for the original franchisee if this occurs. The Minimum Gross Sales required varies based on the time in operation, starting with no minimum for the first 12 months and increasing to $15,000 per month after 48 months.