Once a Clear Pest Pros Franchise Agreement is signed, can the APR of the Note be adjusted?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 10 — FINANCING (FDD pages 38–39)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, once the Franchise Agreement is signed, the APR of the promissory note will not be adjusted. Clear Pest Pros may offer financing for a portion of the Initial Franchise Fee through a promissory note if a franchisee meets their credit standards.
Clear Pest Pros is currently offering an APR of 10%, but they reserve the right to adjust the APR being offered up to 15% based on an individual's credit history. This adjustment, however, must occur before the Franchise Agreement is signed. This means that the APR is determined during the application and approval process, and it is finalized when the agreement is executed.
This policy provides certainty for the franchisee. Once the agreement is in place, the franchisee can rely on the agreed-upon APR for the duration of the note, which can range from 12 to 24 months. This allows for better financial planning and reduces the risk of unexpected changes to the cost of financing the franchise fee.