Does Clear Pest Pros reserve the right to specify a specific insurance provider in the future?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
Before attending Initial Training, you promise to purchase and maintain in full force and effect throughout the Term of this Agreement and at your expense, insurance protecting you, your employees, and us, our officers, and our employees, against loss, liability, fire, personal injury, death, property damages, or theft arising from, or occurring in connection with, the operation and promotion of the Business as specified in detail in the Franchise Agreement or otherwise in writing from us.
All policies will be written by an insurance company(ies) that is/are licensed in the state in which you are doing business, and that has an A.M. Best rating of "A" or better. Currently, you are not obligated by the terms of this Agreement to purchase your insurance from any specific provider, although we reserve the right to specify the specific provider that you must use in the future.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–37)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, franchisees are not currently required to purchase insurance from a specific provider. However, Clear Pest Pros retains the right to mandate the use of a specific insurance provider in the future.
Clear Pest Pros requires franchisees to maintain insurance coverage throughout the term of the agreement. These policies must protect the franchisee, their employees, Clear Pest Pros, its officers, and its employees against various risks, including loss, liability, fire, personal injury, death, property damage, or theft related to the business's operation and promotion. The insurance company must be licensed in the state where the franchisee operates and have an A.M. Best rating of "A" or better.
The insurance policies must be satisfactory to Clear Pest Pros and adhere to the standards and specifications outlined in the Operations Manual or in writing. Minimum coverage requirements are specified, but Clear Pest Pros may periodically modify these limits and require different or additional insurance types to reflect changes in insurance standards, business practices, court awards, and other relevant circumstances. Franchisees are advised to consult with their insurance agent and financial advisor to determine if their personal situation requires additional coverage beyond the minimums set by Clear Pest Pros.
Clear Pest Pros also requires franchisees to provide copies of any insurance claims or cancellations within 24 hours and allows a 24-hour cure period for any lapses in coverage. Insurance policies cannot be canceled, terminated, non-renewed, or materially modified without at least 30 days' prior written notice to Clear Pest Pros. Clear Pest Pros has the right to increase or modify the minimum insurance requirements with 30 days' prior written notice to the franchisee, who must comply within the specified timeframe.