To whom are insurance payments made for a standard Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchise
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made | |
|---|---|---|---|---|---|
| Initial Franchise | $35,000 | $35,000 | Lump sum | On signing the | Us |
| Fee (1) | Franchise Agreement |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–32)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, franchisees must procure and maintain liability and other insurance policies for their vans and Clear Pest Pros business. The table outlining the estimated initial investment for a standard franchise indicates that insurance payments are made to insurance companies.
The initial investment for insurance is estimated to be between $3,120 and $6,240. This payment is due annually and before opening the Clear Pest Pros business, as incurred.
It is common practice in franchising for franchisees to obtain and maintain insurance coverage to protect both the franchisee and the franchisor from potential liabilities. The specific types and amounts of coverage required will be detailed in the Franchise Agreement, as noted in Item 7. Prospective franchisees should carefully review Item 8 of the FDD, as referenced in Item 7, for more information regarding Clear Pest Pros's insurance requirements.