What are the obligations of the franchisee under the Clear Pest Pros Franchise Agreement?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
TUAL OPERATION OF THE FRANCHISE BUSINESS**
You must at all times faithfully, honestly, and diligently perform your obligations under the Franchise Agreement. Except as stated herein, you must designate at least one managing owner (the "Managing Owner") who will be our primary individual contact with your Clear Pest Pros Business and who we will approve in our sole discretion. A Managing Owner may, in our sole discretion, serve as the Managing Owner of more than one Clear Pest Pros Business that is owned by you; provided, however, that we may, in our sole discretion, require you to designate a person who will serve as the primary individual contact and on-site supervisor for this Clear Pest Pros Business (the "Designated Manager"). We must approve of the Designated Manager in writing, which we may grant in our sole discretion. The Managing Owner and, if applicable, the Designated Manager, must successfully
complete our JumpStart and Initial Training Programs as described in and required by the Franchise Agreement. The Designated Manager is not required to have an ownership interest in the Clear Pest Pros Business. The Designated Manager must sign our prescribed form of confidentiality and non-compete agreement. The Managing Owner or, if applicable, the Designated Manager must continuously exert their full-time and best efforts to manage, promote and enhance the Clear Pest Pros Business, and such other Clear Pest Pros Businesses as we permit in our sole discretion. Without our prior written permission, the Managing Owner and, if applicable, the Designated Manager, must not engage in any other business or activity that conflicts with their obligations to operate your Clear Pest Pros Business on a full-time, year-round basis. In the case of multiple owners, the owner with day-to-day responsibility and authority to run the Clear Pest Pros Business and with whom we will communicate shall be identified on the signature line as the first Managing Owner.
Before attending the Initial Training and/or upon any change to the legal entity ownership, you must submit to us a corporate resolution, or similar action, which states the name of the corporation or LLC, the legal names of all of the partners or shareholders, the percentage of ownership that each member controls, their place of residence and their agreement to be bound by the terms of the Franchise Agreement. In the case of multiple owners, you must submit a dispute resolution procedure acceptable to us in our sole discretion that states what you will do in the event that there is a conflict between any owners of the franchisee entity. In addition, at all times, the owners who have executed the Franchise Agreement must own 100% of the ownership interest in the franchisee entity. The remaining owners must sign a written confidentiality and non-compete agreement in the form we prescribe.
The owners of the franchised business and their spouses must personally guarantee the Clear Pest Pros Business. The Managing Owner, Designated Manager and/or key employees will need to execute non-disclosure and confidentiality agreements that we have approved. (Section 6.C. of the Franchise Agreements). We do not have a standard form, as laws vary between states; however, we do require that such agreements will prohibit disclosure, by the employee to any other person or legal entity, of any trade secrets, customer lists, or other information, knowledge, or know-how regarding the System or the operation of the Clear Pest Pros Business, which is deemed confidential or proprietary by us. Such employee non-disclosure and confidentiality agreements will, to the fullest extent permitted by applicable law, prevent employees from servicing or soliciting any of the customers of your Clear Pest Pros Business, except in their capacities as employees of the Clear Pest Pros Business.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 56–57)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, franchisees have several obligations under the Franchise Agreement. Franchisees must operate their Clear Pest Pros business within the territory defined in the agreement. They are expected to perform their obligations faithfully, honestly, and diligently. A managing owner must be designated as the primary contact for the business, and this owner, or a designated manager, must complete the required JumpStart and Initial Training Programs. The managing owner or designated manager must dedicate their full-time efforts to managing, promoting, and enhancing the Clear Pest Pros Business and must not engage in conflicting business activities without prior written permission. Franchisees must also adhere to the standards outlined in the Operations Manual and System Standards, which may be modified periodically by Clear Pest Pros.
Before attending initial training or upon changes to the legal entity ownership, franchisees must provide a corporate resolution with details of the corporation or LLC, names of partners/shareholders, ownership percentages, and agreement to be bound by the Franchise Agreement. In cases of multiple owners, a dispute resolution procedure must be submitted. Owners who executed the Franchise Agreement must maintain 100% ownership, and other owners must sign confidentiality and non-compete agreements. Owners and their spouses must personally guarantee the Clear Pest Pros Business. Managing Owners, Designated Managers, and key employees must sign non-disclosure and confidentiality agreements to protect trade secrets and customer information.
Upon the sale of a Clear Pest Pros franchise, the franchisee must agree not to compete for 24 months within a 50-mile radius of the sold territory. Franchisees must also maintain compliance with the Franchise Agreement and other agreements with Clear Pest Pros or its approved suppliers and vendors, and pay all accrued monetary obligations. If the franchisee is financing the sale, the transferee's obligations must be subordinate to their obligations to pay royalties and comply with the Franchise Agreement. The franchisee must also provide a comfort letter assuring Clear Pest Pros that the transferee will meet their obligations and reaffirming the franchisee's guaranty of the Franchise Agreement.
After the franchise term, the franchisee and their owners/Designated General Manager are restricted from engaging in competitive businesses for 24 months. This includes being an owner, shareholder, partner, director, officer, employee, consultant, or salesperson in a business that offers pest management services. Franchisees are also prohibited from diverting business or customers to competitors or performing any actions that could harm the goodwill associated with the Clear Pest Pros brand and system.