factual

What items in the Clear Pest Pros Disclosure Document discuss pre-opening purchases/leases?

Clear_Pest_Pros Franchise · 2025 FDD

Answer from 2025 FDD Document

n Item 10.

    1. See Items 5 and 11. You must purchase from our Approved Supplier an Initial Package consisting of tablet, backpack sprayer, consumables, vehicle magnets, and an allowance for the purchase of required van graphics.
    1. You may operate your Clear Pest Pros Business from a home office, or an industrial park or commercial space with a minimum of 1,500 square feet. We encourage you to operate your Clear Pest Pros Business from your home, provided your home is within your territory, for the first 12 18 months of business. We estimate that the average monthly rent for an industrial park space ranges from $1,000 to $2,000 per month. Landlords typically require a lease deposit of one or two months' rent. We will not evaluate the location of your commercial space. Your rent may be subject to escalation clauses based on inflation or other factors as provided in your lease. The annual rent amount may vary significantly depending on the area of the country, condition, location and size of the location and the demand for the location among prospective tenants. The rent estimate is based on our experience in our Florida and Georgia locations. Your initial investment will be much greater if you purchase real estate and construct your premises and we do not have any estimate of those costs.
    1. The amount of leasehold improvements required will depend on the condition of the location you select. If you operate from your home, then you may not be required to expend any amount on leasehold improvements. If you must operate your Clear Pest Pros Business from an industrial park or commercial space, then you may have to expend certain amounts to fit the space for the operation of the Clear Pest Pros Business.
    1. This includes operational and accounting software and computer equipment as described by Item 11.
    1. This range of opening inventory consists of products and tools you will need for your Clear Pest Pros Business. You must furnish your Business in a manner that we direct. This will include
  • certain required equipment and tools. This estimate includes all necessary equipment, supplies and inventory necessary to operate your Clear Pest Pros Business in one Territory over the first three months of operation.

    1. You must procure, maintain and provide from our approved vendors, liability and other insurance policies for your vans and your Clear Pest Pros Business as described in the Franchise Agreement. These estimates are based on a franchisee operating in one Territory, and without consideration of National Account work. See Item 8 of this Disclosure Document for more information regarding our insurance requirements. Your vehicle lease may require higher limits or additional coverages.
    1. You must purchase or lease at least one van or truck for use in connection with your Clear Pest Pros Business that complies with our standards and specifications. You will purchase the vehicle from us that will come upfitted with branded graphics, and modeled to hold all fixed equipment. We currently permit two different service vehicle types. You will begin with a Ford Transit Low Roof 130. As the franchised business grows or if the franchised business uses an enclosed trailer for specific services that needs to be towed, then we recommend adding one or more Type 2 service vehicles: Ford Transit 150 LR Van with optional back-up camera. The vehicle must be in good operating condition regardless of age of vehicle. All vehicles must be rust and dent free. We reserve the right to inspect and approve all vehicles used in your Clear Pest Pros Business, and we may require you to upgrade, refurbish or remodel your vehicles such that they comply with our System Standards at any time. The low range in the above chart assumes that you have an existing white vehicle that complies with our standards and specifications that does not have wrapping that needs to be removed.

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 37–38)

What This Means (2025 FDD)

According to Clear Pest Pros' 2025 Franchise Disclosure Document, several items discuss pre-opening purchases and leases. Item 7, which details the estimated initial investment, covers various pre-opening expenses. These include the cost of an Initial Package that consists of a tablet, backpack sprayer, consumables, and vehicle magnets, all of which must be purchased from Clear Pest Pros' approved supplier. Additionally, franchisees are required to have at least one fully wrapped service vehicle, using only vehicle graphics and wraps permitted by Clear Pest Pros and ordered from their authorized vendors.

Item 7 also mentions miscellaneous pre-opening expenses such as utility deposits, telephone installation, legal and accounting services, office supplies, and internet access. These estimates also include funds necessary for the first three months of business operations, covering items like business licenses or permits and security deposits for utilities. The document assumes that franchisees will lease their premises and does not include estimates for real estate purchases. It notes that rent for an industrial park space could range from $1,000 to $2,000 per month, with landlords typically requiring a lease deposit of one or two months' rent.

Furthermore, Item 11 outlines Clear Pest Pros' pre-opening obligations, stating that they do not provide assistance with selecting a business site, negotiating leases, conforming the site to local ordinances, or obtaining required permits. However, Clear Pest Pros must approve the franchisee's business site, considering factors like size, condition, orientation within the territory, co-tenants, and traffic patterns. The document clarifies that failure to select a site and open within the prescribed time period constitutes a default of the franchise agreement, potentially leading to termination.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.