What obligations does the Franchise Owner of Clear Pest Pros agree to observe after termination?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
for payment of these items if you do not timely pay them. Provided, however, the foregoing sentence will not release or discharge you from your obligations to pay us pursuant to this Section and/or to indemnify or reimburse the transferee or purchaser pursuant to the applicable purchase or transfer agreement.
B. MARKS.
Upon the termination or expiration of this Agreement, you promise to:
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- strictly comply with, observe, and abide by all of the post-termination provisions of this Agreement, including those as set forth in Sections 5, 6 and 13.D of this Agreement;
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- neither directly nor indirectly represent to the public that any other business you may then own or operate, is or was operated as, or was in any way connected to, the System;
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- not hold yourself out or advertise in any context that you are a present franchisee or were a former franchisee of ours;
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- immediately refrain from engaging in any business relationship with any contacts with Customers or former Customers of the Clear Pest Pros Business, whether with respect to collection of accounts receivable, providing Services, or for any other purpose whatsoever;
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- assign any and all accounts receivable to us for collection, unless all Royalties and other payment obligations to us are paid in full. In connection with this assignment, you appoint us as attorney-in-fact to engage in these collection activities and you specifically refrain from engaging in any of these collection activities. We promise to employ good faith efforts, including where appropriate in our sole and exclusive judgment the commencement of legal proceedings to collect the accounts receivable. We have no duty or obligation to you to accomplish the collection of such accounts receivable. We will remit to you any of these sums collected after first deducting all moneys owed to us and our costs of collection;
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- immediately cease operation under this Agreement and not operate or do business under any name or in any manner which might tend to give the general public the impression that you are operating a Clear Pest Pros Business, or any confusingly similar business;
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- take the action required to cancel all DBAs or equivalent registrations relating to your use of any Mark;
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- deliver to us, within seven (7) days, all electronic and hard copies of Customer Information;
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- remove all signage from vehicles and store fronts and deliver to us, within five (5) days, the Operations Manual and all copies thereof, and all proprietary information, confidential material, Required Software (including the Clear Pest Pros Software), signs, sign-faces, marketing and advertising materials, forms, uniform patches, decals (or proof of their removal) and other materials containing any Mark or otherwise identifying or relating to a Clear Pest Pros Business, and allow us, without liability to you or third parties, to remove all of these items from your vehicles and place of business;
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- notify the telephone company and all telephone directory publishers and Internet directory listings (including Google, Yahoo! and others), and all social media account providers of the termination or expiration of your right to use any listing, telephone, telecopy, or other numbers and any telephone directory listings associated with any Mark, and authorize the transfer of these numbers, directory listings, and social media accounts with passwords, to us or, at our direction, instruct the telephone company to forward all calls made to your telephone number to numbers we specify. If you fail to do so, we can take whatever action is necessary, on your behalf and consistent with the telephone and other listing agreement attached to this Agreement as Exhibit C, to affect these events;
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- agree to cooperate with us to effectuate any change in telephone numbers or other transfers of our property to us, including the signing of any forms, authorizations or other documents necessary;
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- deliver to us, upon our request, an assignment of any real estate leases for property from which the Clear Pest Pros Business was operated; and
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- deliver to us, within 30 days, evidence that is satisfactory to us of your compliance with each of the foregoing obligations.
**C.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Clear Pest Pros Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee has several obligations. The franchisee must adhere to all post-termination provisions outlined in Sections 5, 6, and 13.D of the agreement. They cannot directly or indirectly represent any other business as being connected to the Clear Pest Pros system. Additionally, they are prohibited from presenting themselves as a current or former Clear Pest Pros franchisee.
Specifically, the franchisee must cease engaging in any business relationship with customers or former customers of the Clear Pest Pros business. They must assign all accounts receivable to Clear Pest Pros for collection, unless all royalties and other payment obligations are fully paid. Clear Pest Pros will then employ good faith efforts to collect these receivables, deducting any owed amounts and collection costs before remitting the balance to the franchisee. The franchisee must also immediately cease operations under the agreement and refrain from using any name or manner that might suggest they are still operating a Clear Pest Pros business.
Furthermore, the franchisee must stop using any of Clear Pest Pros' confidential information, including computer software, and return all copies of the operations manual and other confidential materials. For a period of 24 months after termination or expiration, the franchisee, their owners, and any Designated General Manager are restricted from engaging in any business offering pest management services similar to Clear Pest Pros. This restriction applies within the territory defined in the franchise agreement, the territories of other Clear Pest Pros franchisees or company stores, and a geographic area within a 50-mile radius of these territories. They are also prohibited from soliciting business from former Clear Pest Pros customers or contacting Clear Pest Pros' suppliers or vendors for competitive purposes.