factual

What post-termination obligations and covenants not to compete must the Franchise Owner abide by after transferring the Franchise Agreement to Clear Pest Pros?

Clear_Pest_Pros Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. You must affirm and comply with your post-termination obligations, including, without limitation, such obligations set forth in Sections 6 or 13.

C. CONFIDENTIAL INFORMATION.

You promise that, upon termination or expiration of this Agreement, you must immediately cease to use any of our Confidential Information (including any computer software that we have provided or made available to you) in any business or otherwise, return to us all copies of the Operations Manual and other confidential materials that we have loaned to you, and you shall not maintain any copies of any such materials, in whole or part.

B. MARKS.

Upon the termination or expiration of this Agreement, you promise to:

    1. strictly comply with, observe, and abide by all of the post-termination provisions of this Agreement, including those as set forth in Sections 5, 6 and 13.D of this Agreement;
    1. neither directly nor indirectly represent to the public that any other business you may then own or operate, is or was operated as, or was in any way connected to, the System;
    1. not hold yourself out or advertise in any context that you are a present franchisee or were a former franchisee of ours;
    1. immediately refrain from engaging in any business relationship with any contacts with Customers or former Customers of the Clear Pest Pros Business, whether with respect to collection of accounts receivable, providing Services, or for any other purpose whatsoever;

D. COVENANT NOT TO COMPETE.

For a period of 24 months from the time of expiration or termination of this Agreement, you and your owners and, if applicable, your Designated General Manager, shall not (a) engage as an owner, shareholder, partner, director, officer, employee, consultant, salesperson, representative, or agent or in any other capacity in any business offering pest management for all manner of ants, spiders, roaches, stinging pests, flying pests and rodents on a recurring and/or one time basis, and other related services, (b) solicit business from Customers of your former Clear Pest Pros Business

or contact any of our suppliers or vendors for any competitive business purpose, or (c) divert or attempt to divert any business or Customer of the Clear Pest Pros Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks or the System or engage in any business relationship with any contacts with Customers or former Customers of the Clear Pest Pros Business, whether with respect to collection of accounts receivable, or to provide them services, or for any other purpose whatsoever, within:

    1. the Territory as defined in this Agreement;
    1. the geographic area encompassed by the Territories of any Clear Pest Pros franchisees, Company Stores, or any other Clear Pest Pros business operator, as of the date of the termination or expiration of this Agreement; or
    1. a geographic area that is contained in a circle having a radius of 50 miles outward from the outside boundary of the Territory as defined in this Agreement.

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

What This Means (2025 FDD)

According to Clear Pest Pros' 2025 Franchise Disclosure Document, a franchisee transferring their franchise agreement must comply with post-termination obligations as outlined in Sections 6 and 13 of the agreement.

Specifically, upon termination or expiration of the agreement, the franchisee must immediately stop using any of Clear Pest Pros' confidential information, including computer software, and return all copies of the Operations Manual and other confidential materials without retaining any copies. The franchisee also promises to comply with all post-termination provisions, including those in Sections 5, 6, and 13.D of the Franchise Agreement. They cannot represent any other business as connected to the Clear Pest Pros system or advertise themselves as a current or former franchisee. Franchisees must also cease any business relationship with customers or former customers of the Clear Pest Pros business.

For 24 months after the agreement expires or terminates, the franchisee, their owners, and any Designated General Manager cannot engage in any business offering pest management services for ants, spiders, roaches, stinging pests, flying pests, and rodents, whether on a recurring or one-time basis. They are also prohibited from soliciting business from customers of their former Clear Pest Pros business or contacting Clear Pest Pros' suppliers or vendors for competitive purposes. This non-compete extends to the territory defined in the agreement, the territories of other Clear Pest Pros franchisees or company stores, and a 50-mile radius from the territory's boundary.

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.