factual

What must a person do to qualify for a Clear Pest Pros franchise?

Clear_Pest_Pros Franchise · 2025 FDD

Answer 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;

Source: Item 22 — CONTRACTS (FDD pages 67–68)

What This Means (2025 FDD)

According to Clear Pest Pros's 2025 Franchise Disclosure Document, several conditions must be met to qualify for a franchise. A prospective franchisee must designate a Managing Owner who will be the primary contact for the Clear Pest Pros business, subject to the franchisor's approval. This Managing Owner, or a Designated Manager if required, must successfully complete the JumpStart and Initial Training Programs. The Designated Manager, who does not need an ownership stake, must sign a confidentiality and non-compete agreement.

In cases involving multiple owners, the owner with day-to-day responsibility must be identified as the first Managing Owner. Before attending initial training or if there are changes to the legal entity's ownership, the franchisee must submit a corporate resolution that includes the corporation or LLC name, the legal names of all partners or shareholders, the percentage of ownership each member controls, their place of residence, and their agreement to be bound by the Franchise Agreement terms.

Furthermore, the owners who have executed the Franchise Agreement must control at least 67% of the franchisee entity. Any remaining owners must sign a personal guaranty and agree to maintain the confidentiality of trade secrets and abide by the non-compete covenant. The franchisor also requires that no other business operations may be undertaken through the franchisee's legal entity or by the Managing Owner without prior written consent, and owners may not operate businesses offering similar services.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.