What is the Clear Pest Pros franchisee's obligation regarding the payment of any obligation to the lessor?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
You are solely responsible for: (a) selecting, retaining and paying your employees; (b) the payment of all invoices for the purchase of goods and services used in connection with operating the Clear Pest Pros Business; and (c) determining whether, and on what terms, to obtain any financing or credit that you deem advisable or necessary for the conduct of the Clear Pest Pros Business. You agree to pay all current obligations and liabilities to suppliers, lessors, and creditors on a timely basis. You agree to indemnify us in the event that we are held responsible for debts owed by you if we elect to pay any of your obligations in order to preserve the relationship between system suppliers and Clear Pest Pros franchisees. You agree to make prompt payment of all federal, state and local taxes, including individual and corporate taxes, sales and use taxes, franchise taxes, gross receipts taxes, employee withholding taxes, FICA taxes, personal property and real estate taxes arising from your operation of the Clear Pest Pros Business. You agree to indemnify us in the event that we are held responsible for these taxes.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, franchisees are responsible for paying all obligations to lessors on a timely basis. This means that if a franchisee leases property or equipment for their Clear Pest Pros business, they must ensure that all lease payments are made when due.
This obligation is part of a broader set of responsibilities that Clear Pest Pros franchisees have, including managing employees, paying for goods and services, and handling business financing. Franchisees must also pay all federal, state, and local taxes related to their Clear Pest Pros business, such as sales, use, franchise, gross receipts, and employee-related taxes.
Clear Pest Pros also requires franchisees to indemnify them if Clear Pest Pros is held responsible for any debts or taxes that the franchisee owes. This means that the franchisee is responsible for reimbursing Clear Pest Pros for any payments they make on the franchisee's behalf to maintain relationships with suppliers or to cover unpaid taxes. Therefore, franchisees need to maintain diligent financial management to meet all payment obligations and avoid potential legal or financial repercussions.