If a Clear Pest Pros franchisee's customer is delinquent, what collection procedures can Clear Pest Pros initiate?

According to Clear Pest Pros's 2025 Franchise Disclosure Document, Clear Pest Pros retains the right to contact a franchisee's customers who are delinquent in their payments for 90 days or more. Clear Pest Pros can then initiate collection procedures on behalf of the franchisee.

Clear Pest Pros will take Royalties on Gross Sales collected and apply collection fees as established in the Franchise Agreement. This means that if Clear Pest Pros collects outstanding payments from a delinquent customer, they will deduct their royalty fees from the collected amount before passing the remainder to the franchisee. The specific collection fees that Clear Pest Pros will apply are established in the Franchise Agreement, which a prospective franchisee should review carefully.

This arrangement benefits the franchisee by relieving them of the burden of pursuing collections themselves. However, it also means that the franchisee will not receive the full amount of the collected debt, as Clear Pest Pros will deduct royalties and collection fees. Franchisees should ensure they understand the collection fee structure outlined in the Franchise Agreement to accurately forecast potential revenue and manage customer accounts effectively.