What is the process for Clear Pest Pros to approve a dispute resolution procedure?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 56–57)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, if there are multiple owners of a Clear Pest Pros franchise, the franchisee must submit a dispute resolution procedure to Clear Pest Pros. This procedure should outline how conflicts between the owners of the franchisee entity will be handled.
Clear Pest Pros has sole discretion to determine whether the submitted dispute resolution procedure is acceptable. This means that Clear Pest Pros has the authority to reject a procedure that it deems inadequate or unsuitable.
This requirement is in place before attending the Initial Training or when there is any change to the legal entity ownership. Additionally, the owners who have executed the Franchise Agreement must own 100% of the ownership interest in the franchisee entity.