factual

What is a Clear Pest Pros franchisee prohibited from doing with the Marks after termination?

Clear_Pest_Pros Franchise · 2025 FDD

Answer from 2025 FDD Document

Provision Section in Franchise agreement Summary
Software; (xxiii) you fail to comply with the anti-terrorism provision; (xxiv) you take for your own personal use any assets or property of Clear Pest Pros Business; or (xxv) if there are insufficient funds in your bank account to cover a check or EFT payment 3 or more times within any 12-month period or you fail to achieve minimum sales for 3 consecutive months.
i. Franchisee's obligations on termination/non renewal Section 13 Upon termination or early expiration of the Franchise Agreement, your obligations include: (i) pay all amounts owed to us; (ii) de-identify and otherwise stop using the Marks in any manner, including in business names and telephone listings; (iii) return all Confidential Information and customer lists to us; (iv) comply with post-term non-competition covenants; and (v) deliver proof of compliance.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION. (FDD pages 58–63)

What This Means (2025 FDD)

According to the 2025 Clear Pest Pros Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee is obligated to discontinue using the Marks in any manner. This includes refraining from using the Marks in business names and telephone listings.

This obligation is standard in franchising. When a franchise agreement ends, the franchisee loses the right to operate under the franchisor's brand and must 'de-identify' their business to avoid confusing customers. This protects the integrity of the Clear Pest Pros brand and prevents former franchisees from unfairly benefiting from its reputation.

Clear Pest Pros also requires franchisees to pay all outstanding amounts, return confidential information and customer lists, comply with post-term non-competition covenants, and provide proof of compliance. These stipulations collectively ensure a clean break between Clear Pest Pros and the former franchisee, safeguarding Clear Pest Pros's interests and proprietary information.

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.