Do any officers of Clear Pest Pros have an ownership interest in BELFOR or BHI?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
Some of our officers have an ownership interest in our affiliates BELFOR, and BHI. There are no other suppliers in which any of our officers own an interest at this time, although they reserve the right to do so in the future.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–37)
What This Means (2025 FDD)
According to the 2025 Clear Pest Pros Franchise Disclosure Document, some of the company's officers hold an ownership interest in BELFOR and BHI, which are identified as affiliates of Clear Pest Pros. This relationship is disclosed in Item 8, which discusses restrictions on sources of products and services.
This arrangement means that Clear Pest Pros franchisees may be required to purchase goods or services from companies in which the franchisor's officers have a financial stake. While the FDD states that the items included in the Initial Package may change, it also mentions that the franchisor retains the right to derive revenue from required purchases and leases of products and services.
For a prospective franchisee, this arrangement creates a potential conflict of interest. It is important to evaluate whether the required products and services are competitively priced and of high quality. Furthermore, the franchisee should consider whether the ownership interest of Clear Pest Pros's officers in these affiliated companies could influence decisions about suppliers or product specifications. Clear Pest Pros franchisees should conduct thorough due diligence to ensure that the arrangement is beneficial and does not negatively impact their business.