What happens if Clear Pest Pros elects not to award a renewal franchise agreement?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
If we elect not to award you a renewal franchise agreement, Our Notice will describe the reasons for our decision. Your right to a renewal franchise agreement is subject to your continued compliance with all of the terms and conditions of this Agreement through the date of its expiration, in addition to your compliance with the obligations described in Our Notice.
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- After the Term of the Franchise Agreement. For a period of 24 months from the time of expiration or termination of this Agreement, you and your owners and, if applicable, your Designated General Manager, shall not: (a) engage as an owner, shareholder, partner, director, officer, employee, consultant, salesperson, representative, or agent or in any other capacity in any business offering pest management for all manner of ants, spiders, roaches, stinging pests, flying pests and rodents on a recurring and/or one time basis, and other related services to residential and commercial markets, (b) solicit business from Customers of your former Clear Pest Pros Business or contact any of our supplies or vendors for any competitive business purpose, or (d) divert or attempt to divert any business or Customer of the Clear Pest Pros Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks or the System or engage in any business relationship with any contacts with Customers or former Customers of the Clear Pest Pros Business, whether respect to collection of accounts receivable, or to provide them services, or for any other purpose whatever, within:
a.
The Territory defined in the Franchise Agreement;
- b.
The geographic area encompassed by the Territories of any Clear Pest Pros franchisees, Company Stores, or any other Clear Pest Pros business operator, as of
the date of the termination or expiration of the Franchise Agreement; or
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, if Clear Pest Pros elects not to award a renewal franchise agreement, they will provide a notice describing the reasons for their decision. The franchisee's right to a renewal is contingent upon continued compliance with the existing agreement through its expiration date, as well as adherence to any obligations outlined in Clear Pest Pros's notice.
Upon expiration or termination of the franchise agreement, the franchisee faces certain restrictions. For 24 months, the franchisee, their owners, and any designated general manager are prohibited from engaging in any business offering pest management services similar to Clear Pest Pros. This includes being involved as an owner, shareholder, partner, employee, or consultant in such a business.
Furthermore, the franchisee is restricted from soliciting business from customers of their former Clear Pest Pros business or contacting Clear Pest Pros's suppliers or vendors for competitive purposes. They are also barred from diverting or attempting to divert any business or customer of Clear Pest Pros to a competitor. These restrictions apply within the territory defined in the Franchise Agreement and the geographic areas covered by other Clear Pest Pros franchisees or company stores as of the termination date.