What post-termination obligations must the transferor comply with when transferring a Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
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- You must affirm and comply with your post-termination obligations, including, without limitation, such obligations set forth in Sections 6 or 13.
B. MARKS.
Upon the termination or expiration of this Agreement, you promise to:
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- 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;
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- 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;
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- not hold yourself out or advertise in any context that you are a present franchisee or were a former franchisee of ours;
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- 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;
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- assign any and all accounts receivable to us for collection, unless all Royalties and other payment obligations to us are paid in full. In connection with this assignment, you appoint us as attorney-in-fact to engage in these collection activities and you specifically refrain from engaging in any of these collection activities. We promise to employ good faith efforts, including where appropriate in our sole and exclusive judgment the commencement of legal proceedings to collect the accounts receivable. We have no duty or obligation to you to accomplish the collection of such accounts receivable. We will remit to you any of these sums collected after first deducting all moneys owed to us and our costs of collection;
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- immediately cease operation under this Agreement and not operate or do business under any name or in any manner which might tend to give the general public the impression that you are operating a Clear Pest Pros Business, or any confusingly similar business;
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, a transferor must affirm and comply with their post-termination obligations as outlined in Sections 6 or 13 of the franchise agreement. These obligations are in addition to other requirements for transferring a Clear Pest Pros franchise.
Specifically, upon termination or expiration of the agreement, the franchisee must adhere to post-termination provisions detailed in Sections 5, 6, and 13.D of the agreement. The franchisee cannot directly or indirectly represent any other business as connected to the Clear Pest Pros system. They must also refrain from advertising themselves as a current or former Clear Pest Pros franchisee.
Furthermore, the franchisee must immediately cease business relationships with customers or former customers of the Clear Pest Pros business. They must assign accounts receivable to Clear Pest Pros for collection, provided that all royalties and payment obligations are current. The franchisee must also stop operating under the Clear Pest Pros name or any similar name that could confuse the public.
These post-termination obligations are designed to protect the Clear Pest Pros brand and customer relationships, ensuring a clean break and preventing unfair competition from former franchisees. Prospective franchisees should carefully review Sections 5, 6, and 13.D of the franchise agreement to fully understand these obligations.