What happens if a Clear Pest Pros franchisee is not in full compliance with the Franchise Agreement?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
We will not allow another Clear Pest Pros franchisee or Company Store to perform work within your Territory, except as outlined in Section 1.D below, unless you are not in full compliance with this Agreement.
We also have the right to terminate this Agreement after providing notice and a 30 day cure period if you fail to perform or comply with any one or more of the terms or conditions of this
Agreement or the Operations Manual not specifically contained in Section 12.A above; including, without limitation, any warranty, or certification of this Agreement, and any System Standard or other provision in the Clear Pest Pros owners' intranet website or the Operations Manual.
In addition to our right to terminate this Agreement, and not in lieu of such right, or any other rights we may have against you, upon a failure to cure any default within the applicable time period (if any), we have the right, but not the obligation, to: (1) charge the Non-Compliance Fee; (2) reduce the size of your Territory or permit other franchisees or Company Stores to provide the Services and Products with your Territory; and/or (3) enter upon the Clear Pest Pros Business premises and exercise complete authority with respect to the operation of the Clear Pest Pros Business until such time as we determine, in our sole discretion that the default has been cured, and you are otherwise in compliance with this Agreement. In the event we exercise the rights described in this Section, you must pay us a reasonable management fee of 10% of Gross Sales and reimburse us for all reasonable costs and overhead, if any, incurred in connection with our operation of your Clear Pest Pros Business including, without limitations, costs of personnel for supervising and staffing the Clear Pest Pros Business and their travel and lodging accommodations, plus a 20% service charge.. This fee is in addition to the payment of the Royalty and all other fees due under this Agreement during the time we exercise our rights under this Agreement. If we undertake to operate the Clear Pest Pros Business pursuant to this Section, you agree to indemnify and hold us (and our representative(s) and employees) harmless from and against any fines, claims, suits or proceedings that may arise out of our operation of the Clear Pest Pros Business.
Our delay in exercising or failing to exercise any right or remedy under this Agreement or our acceptance of any late or partial payment due hereunder will not constitute a waiver of any of our rights or remedies against you.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Clear Pest Pros Franchise Disclosure Document, if a franchisee is not in full compliance with the Franchise Agreement, Clear Pest Pros will not allow another franchisee or company store to perform work within the franchisee's territory, unless the franchisee is not in full compliance with the agreement.
Clear Pest Pros has the right to terminate the agreement after providing notice and a 30-day cure period if the franchisee fails to comply with any terms or conditions of the agreement or the Operations Manual. This includes any warranty, certification, System Standard, or other provision in the Clear Pest Pros owners' intranet website or the Operations Manual.
In addition to termination rights, Clear Pest Pros has the right, but not the obligation, to charge a Non-Compliance Fee, reduce the size of the franchisee's territory, permit other franchisees or company stores to provide services within the territory, and/or enter the Clear Pest Pros Business premises to exercise complete authority over the business's operation until the default is cured. If Clear Pest Pros exercises these rights, the franchisee must pay a reasonable management fee of 10% of Gross Sales and reimburse Clear Pest Pros for all reasonable costs and overhead, including personnel costs, travel, and lodging, plus a 20% service charge. This fee is in addition to the Royalty and all other fees due under the agreement during the time Clear Pest Pros exercises its rights. The franchisee also agrees to indemnify and hold Clear Pest Pros harmless from any fines, claims, suits, or proceedings arising out of Clear Pest Pros' operation of the business.
Clear Pest Pros's delay in exercising any right or remedy or acceptance of late or partial payment will not constitute a waiver of any rights or remedies against the franchisee.