What is the Non-Compliance Fee that Clear Pest Pros may charge for uncured defaults?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to our right to terminate this Agreement, and not in lieu of such right, or any other rights we may have against you, upon a failure to cure any default within the applicable time period (if any), we have the right, but not the obligation, to: (1) charge the Non-Compliance Fee; (2) reduce the size of your Territory or permit other franchisees or Company Stores to provide the Services and Products with your Territory; and/or (3) enter upon the Clear Pest Pros Business premises and exercise complete authority with respect to the operation of the Clear Pest Pros Business until such time as we determine, in our sole discretion that the default has been cured, and you are otherwise in compliance with this Agreement. In the event we exercise the rights described in this Section, you must pay us a reasonable management fee of 10% of Gross Sales and reimburse us for all reasonable costs and overhead, if any, incurred in connection with our operation of your Clear Pest Pros Business including, without limitations, costs of personnel for supervising and staffing the Clear Pest Pros Business and their travel and lodging accommodations, plus a 20% service charge.. This fee is in addition to the payment of the Royalty and all other fees due under this Agreement during the time we exercise our rights under this Agreement. If we undertake to operate the Clear Pest Pros Business pursuant to this Section, you agree to indemnify and hold us (and our representative(s) and employees) harmless from and against any fines, claims, suits or proceedings that may arise out of our operation of the Clear Pest Pros Business.
Our delay in exercising or failing to exercise any right or remedy under this Agreement or our acceptance of any late or partial payment due hereunder will not constitute a waiver of any of our rights or remedies against you.
D. NON-COMPLIANCE FEE.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, in addition to the right to terminate the agreement, Clear Pest Pros has the right to charge a Non-Compliance Fee if a franchisee fails to cure a default within the given time period. Clear Pest Pros also has the right to reduce the territory size, allow other franchisees or company stores to provide services in the territory, or take over the Clear Pest Pros Business until the default is cured.
If Clear Pest Pros exercises its right to operate the business, the franchisee must pay a reasonable management fee of 10% of Gross Sales and reimburse all reasonable costs and overhead, including personnel costs, travel, and lodging, plus a 20% service charge. This fee is in addition to the Royalty and all other fees due under the agreement during the time Clear Pest Pros operates the business. The franchisee also agrees to indemnify Clear Pest Pros against any fines, claims, suits, or proceedings that may arise out of their operation of the Clear Pest Pros Business.
It is important to note that any delay or failure by Clear Pest Pros to exercise any right or remedy, or acceptance of late or partial payment, does not constitute a waiver of their rights or remedies against the franchisee. The FDD mentions the Non-Compliance Fee but does not specify the amount that Clear Pest Pros may charge.