factual

What is the length of a Renewal Term for a Clear Pest Pros franchise?

Clear_Pest_Pros Franchise · 2025 FDD

Answer from 2025 FDD Document

The Franchise Agreement grants you the right to operate the Clear Pest Pros Business only within the Territory defined in the Franchise Agreement.

The term of the franchise will be ten (10) years (the "Initial Term") commencing on the date of this Agreement.

Source: Item 22 — CONTRACTS (FDD pages 67–68)

What This Means (2025 FDD)

According to the 2025 Clear Pest Pros Franchise Disclosure Document, the initial term of the franchise agreement is ten years. While the document outlines the conditions for renewal, it does not explicitly state the length of the renewal term.

To be eligible for a renewal, a Clear Pest Pros franchisee must be in compliance with the existing franchise agreement. The franchisor retains the right to grant a renewal, impose conditions for renewal (such as additional training or correcting deficiencies), or deny a renewal if the franchisee has not substantially complied with the agreement during its term. The franchisee may also be required to upgrade or remodel the Clear Pest Pros Business to conform to the current operations manual as a condition of receiving a Renewal Term.

Furthermore, if a Renewal Term is awarded, the franchisee will be required to sign the then-current franchise agreement and any ancillary agreements, which may include different royalty and territory terms. Both parties must also sign a mutual general release of claims. The FDD also states that if this is a Renewal Term, the franchisee will be required to meet the Minimum Monthly Gross Sales requirement for the greater than 48 month level for the entirety of the Renewal Term in year 1 of the Renewal Term, and Gross Sales must continue to grow at a rate of at least three percent (3%) per year in each year of the Renewal Term.

Because the length of the renewal term is not specified in the FDD, prospective franchisees should clarify this detail with the franchisor. Understanding the duration of the renewal term is crucial for long-term business planning and financial forecasting.

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.