For Clear Pest Pros franchisees in Virginia, what must occur before initial fees are collected?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
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
ownership that each member controls, their place of residence and their agreement to be bound by the terms of the Franchise Agreement. In the case of multiple owners, you must submit a dispute resolution procedure acceptable to us in our sole discretion that states what you will do in the event that there is a conflict between any owners of the franchisee entity. In addition, at all times, the owners who have executed the Franchise Agreement must control 67% of the franchisee entity. The remaining Owners must sign a personal guaranty, written agreement to maintain confidentiality of the trade secrets and their agreement to abide by the covenant not to compete, as described in Sections 6 and 13 of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, before attending the Initial Training and/or upon any change to the legal entity ownership, a franchisee in Virginia must submit a corporate resolution or similar action to Clear Pest Pros. This resolution must state the name of the corporation or LLC, the legal names of all partners or shareholders, the percentage of ownership each member controls, their place of residence, and their agreement to be bound by the terms of the Franchise Agreement.
In cases where there are multiple owners, the franchisee must also submit a dispute resolution procedure that is acceptable to Clear Pest Pros. This procedure should outline how conflicts between the owners of the franchisee entity will be resolved. Additionally, the owners who have executed the Franchise Agreement must control at least 67% of the franchisee entity at all times.
The remaining owners are required to sign a personal guaranty, a written agreement to maintain the confidentiality of trade secrets, and an agreement to abide by the covenant not to compete, as detailed in Sections 6 and 13 of the Franchise Agreement. These requirements ensure that Clear Pest Pros maintains control over its brand and operations, and that all owners are committed to upholding the standards and agreements of the franchise system.