What are the insurance requirements for a Clear Pest Pros franchisee to avoid termination?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 FDD, a Clear Pest Pros franchisee must acquire and continuously maintain the required minimum levels of insurance to avoid termination of their franchise agreement. The franchisee must also ensure that Clear Pest Pros, BELFOR USA Group Inc., and BELFOR Franchise Group, LLC are named as additional insured parties on the insurance policies. Furthermore, the franchisee is required to provide a current certificate of insurance to Clear Pest Pros as specified in Section 7.C of the Franchise Agreement.
However, Clear Pest Pros will provide an opportunity to cure the deficiency. If the franchisee receives a notice from Clear Pest Pros regarding failure to maintain the required insurance, the franchisee can avoid termination by immediately ceasing operation of the Clear Pest Pros Business and obtaining the necessary insurance within ten days after receiving the written notice, before resuming operations.
Item 22 of the FDD also states that the types and amounts of insurance coverage are part of the System Standards that Clear Pest Pros may periodically amend in the Operations Manual or in writing. This means the specific insurance requirements can change over time, and Clear Pest Pros franchisees must stay informed of any updates to these standards to remain compliant. The franchisee must provide Clear Pest Pros with copies of any insurance claims or cancellations within 24 hours and must allow at least 30 days prior written notice from the insurance carrier to Clear Pest Pros before any policy is subject to cancellation, termination, non-renewal, or material modification.