Are the remedies granted to Clear Pest Pros franchisor in this assignment cumulative with other remedies?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to our right to terminate this Agreement, and not in lieu of such right, or any other rights we may have against you, upon a failure to cure any default within the applicable time period (if any), we have the right, but not the obligation, to: (1) charge the Non-Compliance Fee; (2) reduce the size of your Territory or permit other franchisees or Company Stores to provide the Services and Products with your Territory; and/or (3) enter upon the Clear Pest Pros Business premises and exercise complete authority with respect to the operation of the Clear Pest Pros Business until such time as we determine, in our sole discretion that the default has been cured, and you are otherwise in compliance with this Agreement. In the event we exercise the rights described in this Section, you must pay us a reasonable management fee of 10% of Gross Sales and reimburse us for all reasonable costs and overhead, if any, incurred in connection with our operation of your Clear Pest Pros Business including, without limitations, costs of personnel for supervising and staffing the Clear Pest Pros Business and their travel and lodging accommodations, plus a 20% service charge.. This fee is in addition to the payment of the Royalty and all other fees due under this Agreement during the time we exercise our rights under this Agreement. If we undertake to operate the Clear Pest Pros Business pursuant to this Section, you agree to indemnify and hold us (and our representative(s) and employees) harmless from and against any fines, claims, suits or proceedings that may arise out of our operation of the Clear Pest Pros Business.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, the franchisor's remedies are cumulative. Specifically, in addition to Clear Pest Pros' right to terminate the Franchise Agreement, and not in lieu of such right, or any other rights they may have against the franchisee, upon a failure to cure any default within the applicable time period, Clear Pest Pros has the right, but not the obligation to: charge a Non-Compliance Fee; reduce the size of the franchisee's territory or permit other franchisees or Company Stores to provide services and products within the territory; and/or enter upon the Clear Pest Pros Business premises and exercise complete authority with respect to the operation of the Clear Pest Pros Business until such time as they determine the default has been cured and the franchisee is in compliance with the agreement.
If Clear Pest Pros exercises the rights described above, the franchisee must pay Clear Pest Pros a reasonable management fee of 10% of Gross Sales and reimburse them for all reasonable costs and overhead, if any, incurred in connection with their operation of the Clear Pest Pros Business including, without limitations, costs of personnel for supervising and staffing the Clear Pest Pros Business and their travel and lodging accommodations, plus a 20% service charge. This fee is in addition to the payment of the Royalty and all other fees due under the agreement during the time Clear Pest Pros exercises its rights under the agreement.
Furthermore, if Clear Pest Pros undertakes to operate the Clear Pest Pros Business, the franchisee agrees to indemnify and hold Clear Pest Pros (and its representative(s) and employees) harmless from and against any fines, claims, suits, or proceedings that may arise out of Clear Pest Pros' operation of the Clear Pest Pros Business. This means that Clear Pest Pros's remedies are not limited to one action but can be pursued concurrently or consecutively, offering them a broader range of options to address franchisee defaults and protect their interests. This is a common practice in franchising, allowing franchisors to take necessary steps to protect their brand and system standards.