When does the minimum gross sales requirement begin for the Clear Pest Pros royalty fee?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 7% of Gross Sales, for the first 12 months of operation Beginning in month 7, the greater of 7% of Gross Sales, or 7% of the Minimum Gross Sales Requirement, which shall be no less than $700 | This fee is due by automatic debit on the 10th day of each month for Gross Sales generated during the preceding month. | See Notes 1 through 5. In addition to the Minimum Royalty, the Minimum Gross Sales requirement begins in month 13 of operations. If you fail to achieve the Minimum Gross Sales, we may collect the greater of the $700 per month (the "Minimum Royalty") or 7% of the Minimum Gross Sales Requirement. |
| Brand Marketing Fee | 2% of Gross Sales. | Deducted monthly at the same time and in the same manner as the Royalty beginning in month 13 of your operation | Your contribution to our Brand Marketing Fund for the common benefit of System franchisees. See Note 6. |
| Technology Fee | $350 per month, per franchisee | Monthly | Fees for website hosting, email hosting, and other required technology or marketing related expenses. We reserve the right to increase this fee as determined by vendor(s), to include the cost to use our Call Center, and to charge an administration fee of up to 15% of the Technology Fee. |
| Software Fee | $750 per franchisee | Monthly | Fee for required software usage, covers up to 4 technicians. One-time set up fee is $650. We reserve the right to increase this fee as determined by vendors, and to charge an administration fee of up to 15% of the Software Fee. |
| Additional Training at your Location | $2,000 per person | Prior to scheduling our staff to visit your location | Payable if we send a Clear Pest Pros employee to your location for additional training; |
Source: Item 6 — OTHER FEES (FDD pages 20–28)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the minimum gross sales requirement for royalty fees begins in month 7 of operation. For the first 12 months of operation, the royalty fee is 7% of gross sales. However, starting in month 7, franchisees must pay the greater of 7% of gross sales or 7% of the minimum gross sales requirement, with a minimum royalty of $700.
For months 13 to 24, the minimum level of monthly Gross Sales is $5,000 per month. For months 25 to 36, the minimum level of monthly Gross Sales is $7,500 per month. For months 37- 48, the minimum level of monthly Gross Sales is $10,000 per month. For months greater than 48, the minimum level of monthly Gross Sales is $15,000 per month.
This means that even if a Clear Pest Pros franchisee's gross sales are low, they must still pay a minimum royalty fee based on these minimum gross sales requirements. This could impact the franchisee's profitability, especially in the early stages of the business. However, enforcement of monthly gross sales minimums is waived during calendar quarters 1 (Jan-Mar) and 4 (Oct-Dec), provided the annual minimum is met.
Prospective franchisees should carefully consider these minimum gross sales requirements and ensure they have a solid business plan to meet or exceed these targets. They should also inquire about any support or training Clear Pest Pros provides to help franchisees achieve these minimums.