Can Clear Pest Pros require franchisees to participate in regional or local advertising cooperatives?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
We may also create regional or local advertising cooperatives, which you may be required to participate in, if developed.
If developed in your area, you may be required to contribute up to two percent (2%) of Gross Sales to such cooperative.
Company-owned locations may participate in such cooperatives, in our sole discretion, but shall not have controlling voting power.
Source: Item 6 — OTHER FEES (FDD pages 20–28)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, Clear Pest Pros may create regional or local advertising cooperatives. If these cooperatives are developed in a franchisee's area, the franchisee may be required to participate. The required contribution can be up to 2% of the franchisee's Gross Sales.
Company-owned locations may also participate in these cooperatives at Clear Pest Pros's discretion, but they will not have controlling voting power. This suggests that while Clear Pest Pros may encourage participation from its company-owned locations, the franchisees' interests within the cooperative will be protected from being overshadowed by the company's own agenda.
The FDD also lists 'Local or Regional Cooperative Fees' in a table outlining other fees. This fee, if established, will be no more than 2% of Gross Sales and will be deducted monthly, at the same time and in the same manner as the Royalty fee. These fees are paid to a cooperative of local or regional franchisees for advertising on behalf of the group.