What are the insurance requirements for a Clear Pest Pros franchisee to avoid automatic termination?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
, unless caused by an act of God, or other circumstance beyond your control, as determined by us; or the business telephone is disconnected at any time and no new number is immediately reinstalled or reconnected; or your conduct is otherwise determined by us to constitute an abandonment of the Business;
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- You fail to acquire or continuously maintain the required minimum levels of insurance, fail to have us, BELFOR USA Group Inc. and/or BELFOR Franchise Group, LLC named as an additional insured, or fail to provide a current certificate of insurance to us as required in Section 7.C of this Agreement. However, we will not exercise our right to terminate this Agreement if upon receipt of notice from us, you immediately cease operating the Clear Pest Pros Business and obtain such insurance within ten (10) days after written notice is delivered to you prior to resuming operation;
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- You fail to attend a Clear Pest Pros convention without prior written permission;
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Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, failure to acquire or maintain the required minimum levels of insurance, failure to have Clear Pest Pros and related entities named as additional insured parties, or failure to provide a current certificate of insurance can lead to immediate termination of the franchise agreement. However, Clear Pest Pros will provide an opportunity to cure this breach.
Specifically, if a franchisee receives notice from Clear Pest Pros regarding a failure to maintain adequate insurance, the franchisee can avoid termination by immediately ceasing operation of the Clear Pest Pros business and obtaining the required insurance within ten days after receiving the written notice. Once the insurance is secured, the franchisee can resume business operations.
Clear Pest Pros also has the right to modify the minimum insurance requirements with 30 days prior written notice to the franchisee, and the franchisee must comply with any such modifications within the specified timeframe. Franchisees must also provide copies of any insurance claims or cancellations to Clear Pest Pros within 24 hours.