factual

What is the purpose of the Brand Marketing Fee for Clear Pest Pros franchisees?

Clear_Pest_Pros Franchise · 2025 FDD

Answer from 2025 FDD Document

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Name of Fee Amount Due Date Remarks
Royalty 7% of Gross Sales, for the first 12 months of operation Beginning in month 7, the greater of 7% of Gross Sales, or 7% of the Minimum Gross Sales Requirement, which shall be no less than $700 This fee is due by automatic debit on the 10th day of each month for Gross Sales generated during the preceding month. See Notes 1 through 5. In addition to the Minimum Royalty, the Minimum Gross Sales requirement begins in month 13 of operations. If you fail to achieve the Minimum Gross Sales, we may collect the greater of the $700 per month (the "Minimum Royalty") or 7% of the Minimum Gross Sales Requirement.
Brand Marketing Fee 2% of Gross Sales. Deducted monthly at the same time and in the same manner as the Royalty beginning in month 13 of your operation Your contribution to our Brand Marketing Fund for the common benefit of System franchisees. See Note 6.
Technology Fee $350 per month, per franchisee Monthly Fees for website hosting, email hosting, and other required technology or marketing related expenses. We reserve the right to increase this fee as determined by vendor(s), to include the cost to use our Call Center, and to charge an administration fee of up to 15% of the Technology Fee.
Software Fee $750 per franchisee Monthly Fee for required software usage, covers up to 4 technicians. One-time set up fee is $650. We reserve the right to increase this fee as determined by vendors, and to charge an administration fee of up to 15% of the Software Fee.
Additional Training at your Location $2,000 per person Prior to scheduling our staff to visit your location Payable if we send a Clear Pest Pros employee to your location for additional training; due regardless of whether you request the
Name of Fee Amount Due Date Remarks
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additional training or we determine, in our sole discretion, your work performance requires additional training. We reserve the right to increase this fee in accordance with the Consumer Price Index ("CPI").
Local or Regional Cooperative Fees If established, no more than 2% of Gross Sales If established, deducted monthly at the same time and in the same manner as the Royalty Paid to a cooperative of local or regional franchisees for advertising on behalf of the group.
Transfer Fee 25% of the Initial Franchise Fee at the time of transfer, but no less than $8,750 Due upon the transferee signing the new Franchise Agreement Due upon transfer to a third party. A one-time fee of $1,000 if the transfer is to a spouse or adult offspring. These fees are non-refundable.

Source: Item 6 — OTHER FEES (FDD pages 20–28)

What This Means (2025 FDD)

According to Clear Pest Pros's 2025 Franchise Disclosure Document, the Brand Marketing Fee is a contribution to the Brand Marketing Fund, which is used for the common benefit of all Clear Pest Pros franchisees within the system. Franchisees are required to contribute 2% of their gross sales monthly to this fund. This fee is deducted monthly, at the same time and manner as the royalty, beginning in month 13 of the franchisee's operation.

In addition to the Brand Marketing Fee, Clear Pest Pros may establish regional or local advertising cooperatives, which franchisees may be required to participate in. If such cooperatives are developed in a franchisee's area, they may be required to contribute up to 2% of their gross sales to the cooperative.

The Brand Marketing Fund is a common practice in franchising, allowing the franchisor to coordinate marketing efforts that benefit the entire brand. Franchisees should inquire about how the Brand Marketing Fund is managed, what specific marketing activities it supports, and whether there is an advisory council of franchisees involved in overseeing the fund's expenditures.

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.