What obligations of the Franchisee does the Personal Guaranty in the Clear Pest Pros agreement cover?

According to Clear Pest Pros' 2025 Franchise Disclosure Document, if the franchisee is a legal entity such as a partnership, LLC, or corporation, all general partners, members, and direct/indirect equity holders must execute an agreement personally guaranteeing the entity's obligations to Clear Pest Pros. This personal guaranty covers the full payment and performance of the legal entity's obligations to Clear Pest Pros. The individuals also undertake to be bound, individually, jointly, and severally, by all the terms of the Franchise Agreement. This includes, without limitation, the restrictions on assignment contained within the agreement.

The personal guaranty must be in the form attached as Exhibit A-3 to the Franchise Agreement or in another form that Clear Pest Pros may prescribe from time to time. This means that the specific terms of the guaranty are detailed in a separate exhibit, and Clear Pest Pros retains the right to modify the form of the guaranty.

For a prospective Clear Pest Pros franchisee, this requirement means that if you operate your franchise through a legal entity, you and potentially other owners or equity holders will be personally liable for the franchise's financial and operational obligations to Clear Pest Pros. This is a significant consideration, as it extends liability beyond the business entity to your personal assets. Franchisees should carefully review Exhibit A-3 and understand the full scope of the personal guaranty before signing the Franchise Agreement. It is also important to note that even remaining owners of the Clear Pest Pros Business must sign a personal guarantee.