Is the right and license of the Marks awarded to a Clear Pest Pros franchisee exclusive?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
The right and license of the Marks awarded to you under this Agreement is nonexclusive, and we may:
- a. award other licenses and franchises for the Marks, in addition to those licenses and franchises already awarded;
- b. use the Marks in connection with marketing and selling of any products and services as we deem appropriate; and
c. develop and establish other systems using the Marks, similar proprietary marks, or any other proprietary marks, and grant licenses thereto without providing any rights therein to you.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the right and license of the Marks awarded to a franchisee are nonexclusive. Clear Pest Pros retains the right to award other licenses and franchises for the Marks, in addition to those already awarded. They can also use the Marks in connection with marketing and selling any products and services as they deem appropriate. Furthermore, Clear Pest Pros can develop and establish other systems using the Marks, similar proprietary marks, or any other proprietary marks, and grant licenses without providing any rights to the franchisee.
This non-exclusive arrangement means that Clear Pest Pros can license the Marks to other franchisees or even use them themselves in various ways, potentially creating competition for the franchisee. This is a common practice in franchising, as it allows the franchisor to expand the brand's reach and explore different market segments. However, it also means that the franchisee's territory is not entirely protected from competition from within the Clear Pest Pros system.
For a prospective Clear Pest Pros franchisee, it is crucial to understand the implications of this non-exclusive license. While the franchise agreement may grant a specific territory, Clear Pest Pros retains considerable freedom to operate and license the Marks in other ways. Therefore, it is important to carefully evaluate the market potential within the assigned territory and consider the potential for competition from other Clear Pest Pros ventures. Understanding the franchisor's long-term strategy for the brand and its Marks is essential for making an informed investment decision.