Does Clear Pest Pros offer financing for the initial franchise fee?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
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Initial Franchise Fee
If we grant you the right to open and operate a Clear Pest Pros Business for a Standard Territory, we may offer you financing for a portion of the Initial Franchise Fee if you meet our qualifications. The following table summarizes the financing we may offer you for Initial Franchise Fee for a Standard Territory.
| Obligation | Section in Franchise Agreement | Disclosure Document Item | |
|---|---|---|---|
| m. Maintenance, | Sections 7 and 11 | None | |
| appearance and | |||
| remodeling requirements | |||
| n. Insurance | Sections 7.C | Items 6, 7 and 8 | |
| o. Advertising | Sections 1.C, 1.D, 1.E, 2.G, 3.B, 4 and 7.A | Items 6, 8 and 11 | |
| p. Indemnification | Section 14.C | Items 6, 8 and 12 | |
| q. Owner’s participation/ | Sections 1.C, 1.H, 7.A and 8 | Items 11 and 15 | |
| management/ staffing | |||
| r. Records/reports | Sections 3.B and 7.D | Items 6, 11 | |
| s. Inspections and audits | Section 8 | Item 6, 11 and 17 | |
| t. Transfer | Section 10 | Items 6 and 17 | |
| u. Renewal | Section 11 | Item 6 and 17 | |
| v. Post-termination | Sections 6 and 13 | Item 17 | |
| obligations | |||
| w. Non-competition | Sections 6 and 13.D | Item 17 | |
| covenants | |||
| x. Dispute resolution | Section 15.F | Item 17 | |
| y. Personal Guaranty | Exhibit A-3 to the Franchise Agreement | Item 15 | |
| Monthly Payment | Varies depending on amount financed and term. | ||
| Prepayment Penalty | None | ||
| Security Required | Personal Guaranty | ||
| Guaranty | Personal Guaranty | ||
| Liability upon Default | Termination or other loss of Franchise; you must also pay entire amount due and our attorneys’ fees and court costs in collecting debt | ||
| Loss of Legal Rights Upon Default | You must waive presentation for payment, demand, notice of non- payment, protest, and all other demands and notices required by law (statutory or otherwise) | If you would like to finance a portion of the Initial Franchise Fee, and you meet our credit standards, you may do so through a promissory note (the "Note"), which is currently attached as Exhibit B. You must make a down payment of at least 50% of the Initial Franchise Fee. We are currently offering an APR of 10% but reserve the right to adjust the APR being offered up to 15%, based on your credit history. We will not adjust APR of the Note once your Franchise Agreement has been signed. A late fee of five percent (5%) or $50, per week, whichever sum is greater, will be collected if you fail to make timely payments or your payments are returned to us with non-sufficient funds. |
Source: Item 10 — FINANCING (FDD pages 38–39)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, Clear Pest Pros may offer financing for a portion of the initial franchise fee to qualified franchisees for a Standard Territory. If a franchisee meets Clear Pest Pros's credit standards, they can finance a portion of the initial franchise fee through a promissory note.
The franchisee must make a down payment of at least 50% of the initial franchise fee. The interest rate is currently 10% APR, but Clear Pest Pros reserves the right to adjust it up to 15% based on the franchisee's credit history. Once the Franchise Agreement is signed, the APR will not be adjusted. The term of the note will be between 12 to 24 months, as agreed upon by both parties, and can be prepaid without penalty.
If a franchisee fails to make timely payments, a late fee of 5% or $50 per week, whichever is greater, will be charged. Security for the note requires a personal guaranty from the franchisee, all owners, and their respective spouses. Failure to make payments can result in Clear Pest Pros calling the note for the full outstanding balance and potentially terminating the Franchise Agreement after a ten-day notice to cure the default.
In the event of default and legal proceedings, the franchisee agrees to cover all costs and expenses, including reasonable attorney fees, incurred in collecting the debt. The franchisee must also waive presentation for payment, demand, notice of non-payment, protest, and all other demands and notices required by law. A sample note is included as Exhibit B in the Disclosure Document.