Is the license to use the Marks awarded to a Clear Pest Pros franchisee exclusive?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
The right and license of the Marks awarded to you under this Agreement is nonexclusive, and we may:
- a. award other licenses and franchises for the Marks, in addition to those licenses and franchises already awarded;
- b. use the Marks in connection with marketing and selling of any products and services as we deem appropriate; and
c. develop and establish other systems using the Marks, similar proprietary marks, or any other proprietary marks, and grant licenses thereto without providing any rights therein to you.
B. NOTIFICATION OF INFRINGEMENTS AND CLAIMS.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the license to use the Marks is nonexclusive. Clear Pest Pros retains the right to award other licenses and franchises for the Marks, in addition to those already awarded. They can also use the Marks in connection with marketing and selling any products and services as they deem appropriate. Furthermore, Clear Pest Pros can develop and establish other systems using the Marks, similar proprietary marks, or any other proprietary marks, and grant licenses to them without providing any rights to the franchisee.
This non-exclusive license means that Clear Pest Pros can license the Marks to other franchisees, use the Marks themselves, or even create entirely new systems using the same or similar Marks. This could potentially lead to increased competition for franchisees, both from other franchisees and from Clear Pest Pros itself. It also means that Clear Pest Pros has considerable flexibility in how they use and develop their brand, which could be beneficial in the long run but also carries the risk of brand dilution if not managed carefully.
While the license to use the Marks is nonexclusive, Clear Pest Pros states that they "will not allow another Clear Pest Pros franchisee or Company Store to perform work within your Territory...unless you are not in full compliance with this Agreement." This suggests that while Clear Pest Pros can license the marks to others, franchisees are granted some territorial protection from other Clear Pest Pros franchisees and Company Stores as long as they remain in compliance with the Franchise Agreement. The franchisee's territory consists of a set of zip codes.
Prospective franchisees should carefully consider the implications of the non-exclusive license and the territorial protections offered. It is important to understand the potential for competition and how Clear Pest Pros might use the Marks in the future. Franchisees should also ensure they remain in full compliance with the Franchise Agreement to maintain their territorial protections.