Does Clear Pest Pros offer incentives to prospective franchisees?

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From time to time, we may offer incentives of cash grants, equipment, product, or other items as an inducement to prospective franchisees when business circumstances warrant and in states where such incentives can be offered without restrictions. We reserve the right to change or cancel any offer at any time.

We are a member of the International Franchise Association (IFA) and participate in the IFA's VetFran Program. We provide a 20% discount on the Initial Franchise Fee for the first Territory to veterans of U.S. Armed Forces who have been honorably discharged or otherwise meet the requirements of the VetFran program. We reserve the right to require proof that the applicant qualifies for this discount.

We also offer a $2,500 discount on the Initial Franchise Fee on the first Territory to first responders, which include sworn police officers, paid and volunteer firefighters, and paid and volunteer emergency medical technicians and paramedics. This discount may not be used in conjunction with the VetFran discount. We reserve the right to require proof that the applicant qualifies for this discount.

We also offer a discount of 10% of the Initial Franchise Fee to qualified individuals that have (1) a minimum of two years of experience in the industry and (2) secured applicable state licensing ("Experience Discount"). These discounts may not be combined or used in conjunction with any other discount. We reserve the right to require proof that the applicant qualifies for these discounts.

We also offer additional financing to those franchisees purchasing Standard Territories that meet our credit standards. Our financing is described in more detail in Item 10.

5.2 Related Franchisee Package

If you are currently a franchisee in good standing, as determined by us, with one of our franchising affiliates (a "Related Franchisee"), then you may qualify to purchase a Clear Pest Pros Business with discounted initial fees. The initial fees for a Related Franchisee will be 25% off of the then-current Initial Franchise Fee, and such discounted fee is limited to up to two (2) Franchises, which must be purchased at the same time. You must also obtain, from us, the Initial Package which is described above. A Related Franchisee cannot use any other discounts, and the Initial Franchise Fee is non-refundable.

5.3 Initial Fees for Conversion Franchises

If you are an existing pest control business that has grossed at least $100,000 in annual sales in your two (2) most recent fiscal years, then you may qualify to purchase a Clear Pest Pros Business as a conversion franchise ("Conversion Franchise"). To be eligible to purchase a Conversion Franchise, you must provide two (2) years' worth of tax returns (Form 1040 with schedule C, E, or F, Form 1065, Form 1120S, or Form 1120) and any additional information that we reasonably request. The Initial Fee for a Conversion Franchise purchasing a Standard Territory is $25,000. If you wish to purchase multiple Standard Territories at the time you sign your first Franchise Agreement with us, then we will discount the Initial Franchise Fee for the additional Franchise Agreement(s) by $5,000. We allow the purchase of up to two (2) additional Territories at the time you purchase the first. The discount is only applicable at the time you purchase the first Standard Franchise, cannot be combined with any other discount, and will not be granted toward any future Territory expansions.

Source: Item 5 — INITIAL FEES (FDD pages 18–20)