What is Clear Pest Pros' intent regarding the judicial enforcement of the non-competition provisions?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
- Intent and Enforcement. It is the parties' intent that the provisions of this Article III be judicially enforced to the fullest extent permissible under applicable law. Accordingly, the parties agree that any reduction in scope or modification of any part of the noncompetition provisions contained herein will not render any other part unenforceable. In the event of the actual or threatened breach of this Article III by you, any of your principals, or any members of their immediate family, Franchisor will be entitled to an injunction restraining such person from any such actual or threatened breach. You agree that in the event of the actual or threatened breach of this Article III, Franchisor's harm will be irreparable and that Franchisor has no adequate remedy at law to prevent such harm. You acknowledge and agree that each of you has previously worked or been gainfully employed in other careers and that the provisions of this Article III in no way prevent you from earning a living. You further acknowledge and agree that the time limitation of this Article III will be tolled during any default under this Personal Guaranty.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, the company intends to enforce the non-competition provisions in its franchise agreements to the fullest extent permissible under law. This means Clear Pest Pros is committed to legally pursuing franchisees who violate the non-compete terms. The agreement specifies that any modification or reduction in the scope of the non-competition provisions will not affect the enforceability of the remaining parts. This indicates that Clear Pest Pros aims to maintain the non-compete's integrity even if certain aspects are challenged.
Clear Pest Pros is entitled to seek an injunction against a franchisee, their principals, or immediate family members in the event of an actual or threatened breach of the non-competition agreement. An injunction is a court order that would restrain the person from engaging in the prohibited competitive activities. The franchise agreement states that any harm to Clear Pest Pros resulting from a breach of the non-compete would be irreparable, and that monetary damages would not be an adequate remedy. This highlights the importance Clear Pest Pros places on preventing competition from former franchisees.
The agreement also includes an acknowledgement by the franchisee that they have worked in other careers and that the non-competition provisions will not prevent them from earning a living. Additionally, the time limitation of the non-compete may be extended during any default under the Personal Guaranty. This suggests Clear Pest Pros has considered the franchisee's ability to earn a living and has structured the non-compete to be reasonable, while still protecting its business interests. Prospective franchisees should carefully review these non-competition provisions with legal counsel to understand the full scope of their obligations and potential limitations after the franchise agreement terminates.