What is the purpose of the Collateral Assignment and Assumption of Lease for a Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
Exhibits:
- Exhibit A Designated Personnel
- Exhibit B Franchise Management Software License Agreement
- Exhibit C Telephone and Other Listing Agreement
- Exhibit D Guaranty and Assumption of Franchisee's Obligations
- Exhibit E Electronic Funds (EFT) Authorization
- Exhibit F Collateral Assignment and Assumption of Lease
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Clear Pest Pros Franchise Disclosure Document, Exhibit F lists the 'Collateral Assignment and Assumption of Lease' as one of the exhibits included in the franchise agreement.
However, the provided excerpts do not contain specific details outlining the purpose and stipulations of the 'Collateral Assignment and Assumption of Lease.' This agreement typically involves using the franchise lease as collateral for financing and specifies the conditions under which the lease obligations can be transferred to another party.
A prospective Clear Pest Pros franchisee should request a full copy of Exhibit F, the 'Collateral Assignment and Assumption of Lease' agreement, from the franchisor and review it carefully with a legal advisor. This will help them understand their obligations and the circumstances under which the lease can be assigned or assumed by another party.