If a Clear Pest Pros franchisee breaches the lease, what options does the franchisor have?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of a breach or default by Franchisee under the terms of the Lease, or, in the event Franchisor makes any payment to the Lessor as a result of the Franchisee's breach of the Lease, then such payment by the Franchisor, or such breach or default by the Franchisee, shall at Franchisor's option be deemed to be an immediate default under the Franchise Agreement, and the Franchisor shall be entitled to the possession of the Site and to all of the rights, title and interest of the Franchisee in and to the Lease and to all other remedies described herein or in the Franchise Agreement or at law or in equity, without prejudice to any other rights or remedies of the Franchisor under any other agreements or under other applicable laws or equities.
This Assignment shall constitute a lien on the interest of the Franchisee in and to the Lease until satisfaction in full of all amounts owed by the Franchisee to the Franchisor.
In addition, the rights of the Franchisor to assume all obligations under the Lease provided in this Assignment are totally optional on the part of the Franchisor, to be exercised in its sole discretion.
Franchisee agrees to execute any and all Uniform Commercial Code financing statements and all other documents and instruments deemed necessary by
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, if a franchisee breaches the terms of their lease, or if Clear Pest Pros makes a payment to the lessor due to the franchisee's breach, Clear Pest Pros has the option to consider it an immediate default under the Franchise Agreement.
In such a case, Clear Pest Pros is entitled to possession of the site and all rights, title, and interest of the franchisee in the lease. This includes all other remedies described in the Franchise Agreement or available at law or in equity, without affecting any other rights or remedies Clear Pest Pros may have. The document specifies that the assignment constitutes a lien on the franchisee's interest in the lease until all amounts owed to Clear Pest Pros are satisfied.
The option for Clear Pest Pros to assume all obligations under the lease is entirely at their discretion. The franchisee also agrees to execute any Uniform Commercial Code financing statements and other necessary documents as deemed necessary by Clear Pest Pros to protect its interests.