What happens if there is a conflict between owners of a Clear Pest Pros franchisee entity?
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 own 100% of the ownership interest in the franchisee entity. The remaining owners must sign a written confidentiality and non-compete agreement in the form we prescribe.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 56–57)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, if there are multiple owners of a Clear Pest Pros franchise, the franchisee must submit a dispute resolution procedure that is acceptable to Clear Pest Pros. This procedure must outline the steps that will be taken if a conflict arises between the owners of the franchisee entity. This is required before attending initial training or when there is a change to the legal entity ownership.
Clear Pest Pros maintains the right to determine if the dispute resolution procedure is acceptable. This gives Clear Pest Pros some control over how internal disputes are handled within its franchise network. It is important that the owners who have executed the Franchise Agreement maintain 100% ownership interest in the franchisee entity.
This requirement ensures that Clear Pest Pros has a clear path for resolving disputes and maintaining consistency across its franchise operations. Prospective franchisees with multiple owners should carefully consider and document their dispute resolution process to meet Clear Pest Pros's requirements.