What rights are continued for the FRANCHISE OWNER(S) when renewing a Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
ANCHISOR") and [Name] (together referred to as the "FRANCHISE OWNER" and/or "you") resident of [State], and [Corp/LLC,] ("Franchisee") and shall be effective as of the date of the last signature below.
W I T N E S S E T H:
WHEREAS, FRANCHISOR and FRANCHISE OWNER(S) entered into Franchise Agreement on the [date] (the "Franchise Agreements") for the operation of a Clear Pest Pros business in a defined territory(s) in the state of [State] (the "Business"), which Franchise Agreements is being renewed;
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by and between each of the parties, it is agreed and understood as follows:
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- FRANCHISE OWNER(S) and FRANCHISOR have agreed upon new renewal Franchise Agreements, to be executed contemporaneously with this Mutual Release, which will replace your original Franchise Agreements, thus continuing FRANCHISE OWNER(S) rights to operate a Clear Pest Pros business within a Territory, as defined in the Franchise Agreement in the State of [State].
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Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Clear Pest Pros Franchise Disclosure Document, upon the expiration of the initial franchise agreement, a franchisee may be able to continue their Clear Pest Pros business for one additional term of ten years, provided they have substantially complied with the agreement's provisions during the initial term, including the timely payment of all fees and royalties.
To be awarded a Renewal Term, the franchisee and Clear Pest Pros must agree upon new renewal Franchise Agreements, which will replace the original Franchise Agreements. This continues the Franchise Owner's rights to operate a Clear Pest Pros business within a Territory, as defined in the Franchise Agreement in the State of [State]. Both parties must also execute a contemporaneous Mutual Release.
However, the renewal is not guaranteed. Clear Pest Pros has the option to award a renewal franchise agreement, award one conditioned on correcting any non-compliance issues (potentially requiring additional training), or deny a renewal if the franchisee has not substantially complied with the agreement during its term. Clear Pest Pros will provide notice of their decision, including reasons for denial or actions needed to correct deficiencies. The franchisee must continue complying with all agreement terms through the expiration date to maintain renewal eligibility. Additionally, Clear Pest Pros may require the franchisee to upgrade and remodel the Clear Pest Pros Business to meet current standards in the Operations Manual as a condition of renewal, and the franchisee must prove they have the right to operate at the Office Site for the Renewal Term.