How are the monthly installments for the Clear Pest Pros promissory note required to be paid?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | FOR VALUE RECEIVED, and |
|---|---|
| (collectively, the "Undersigned") promises to pay to the order of Safer Home Services | |
| International, LLC, | a Michigan Limited Liability Company, at 5405 Data Court, Ann |
| Arbor, Michigan 48108 (the "Holder"), the principal sum of $ together | |
| with interest at a rate of 10% for up to 24 months. The principal and interest shall be paid | |
| in equal monthly installments as stated in the payment schedule attached to this Promissory | |
| Note as Exhibit "1", which is made a part of this Promissory Note. The first installment | |
| shall be due via Electronic Funds Transfer ("EFT") on the first of the month following the | |
| successful completion of the initial training, if required under the franchise agreement, | |
| between Holder and the Undersigned, and thereafter monthly installments will be due via | |
| EFT on the first day of each successive month until the principal and interest due under | |
| this Promissory Note have been paid in full. PROVIDED, HOWEVER, that the entire | |
| principal balance together with all accrued interest thereon shall be due and payable on or | |
| before 36 months following the payment of the first installment, anything here in this | |
| Agreement to the contrary notwithstanding. | After maturity of this Promissory Note |
| (whether by acceleration or otherwise), Holder shall have the right to collect all payments, | |
| together with all accrued interest and late fees, due. |
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- Monthly installments shall be applied first upon interest and the balance upon principal. This Promissory Note may be prepaid in full at any time without restriction or penalty.
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- Should any monthly installment not be paid when due, then the Holder shall elect to either (a) require that the whole sum of the remaining principal and interest shall become due immediately and payable upon notice to the Undersigned or (b) charge a late fee of 5% or $50, per week, whichever sum is greater. All unpaid amounts owing on this Promissory Note shall immediately become due and payable at the option of Holder wit
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Clear Pest Pros Franchise Disclosure Document, monthly installment payments are first applied to cover the interest accrued, with the remaining balance then reducing the principal amount of the promissory note. The promissory note can be prepaid in full at any time without any restrictions or penalties.
If a monthly installment is not paid when due, Clear Pest Pros has the option to either demand immediate payment of the entire remaining principal and interest or charge a late fee. This late fee is calculated as 5% of the unpaid amount or $50 per week, whichever is greater.
Additionally, all unpaid amounts become immediately due and payable at Clear Pest Pros's discretion, without notice, if any of the following events occur: default on any provision of the promissory note; death, dissolution, or insolvency of the franchisee; filing of a bankruptcy petition; sale of substantially all of the franchisee's stock or assets; or the franchisee's failure to allow Clear Pest Pros to collect amounts via Electronic Funds Transfer (EFT).