When are the monthly reports due for royalty payments for a Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
roval. Conversion Franchisees may be required to secure data mining services to convert its current customer and client data into our approved software system as part of its start-up expense.
C. ROYALTY.
You shall pay us a monthly royalty (the "Royalty") equal to seven percent (7%) of Gross Sales, as defined below in Section 2.D. Beginning in the seventh month following initial training the Royalty payment due is subject to a required minimum monthly payment of $700. If the percentage Royalty is less than $700, you will be required to pay the minimum monthly royalty of $700 instead. For purposes of paying the Royalty, monthly reports are due by the fifth (5th) day of each month and payment is due on the 10th day of each month. You will provide an itemization of the jobs on which Royalties will be assessed, and the total of the Royalties, in the form, format, and medium we decide in our sole discretion. On the tenth (10th) of each month (or other date that we designate), we will initiate a transfer of funds between our bank accounts for the amount indicated in the i
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, monthly reports for royalty payments are due by the fifth day of each month, with the actual payment due on the 10th day of each month. The royalty is 7% of Gross Sales, but beginning in the seventh month after initial training, there is a minimum monthly royalty payment of $700. If the 7% royalty is less than $700, the franchisee must pay the $700 minimum.
The franchisee must provide an itemization of the jobs on which royalties will be assessed, along with the total royalties due, in a format specified by Clear Pest Pros. Clear Pest Pros will then initiate an electronic funds transfer (EFT) from the franchisee's designated bank account on the 10th of each month (or another date Clear Pest Pros designates). Franchisees are required to authorize these automatic debits before opening their Clear Pest Pros Business.
If a franchisee fails to report Gross Sales or submit royalty reports on time, a late report fee of $50 per day will be imposed. Additionally, if the royalty payment is not available for debiting when due, a late payment fee of 5% of the amount due or $50 per week (whichever is greater) will be charged. Interest will also be imposed at a rate of 18% per annum or the maximum rate permitted by law on any late amounts. Clear Pest Pros can automatically debit the franchisee's account for these late fees and interest charges.