What rights do the renewal Franchise Agreements continue for the Clear Pest Pros Franchise Owner(s)?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
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].
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Clear Pest Pros Franchise Disclosure Document, a renewal franchise agreement continues the franchisee's rights to operate a Clear Pest Pros business within a defined territory. The new renewal Franchise Agreements will replace the original agreements. To obtain a renewal, the franchisee must sign the then-current franchise agreement and any related ancillary agreements, which may include different royalty and territory terms. Both the franchisee and Clear Pest Pros must sign a mutual general release of claims against each other.
Clear Pest Pros may require the franchisee to upgrade and remodel the business to conform to the current operations manual as a condition of renewal. The franchisee must also prove they have the right to operate at the office site for the renewal term. The franchisor has the option to award a renewal agreement, award one conditioned on correcting deficiencies (which may require additional training), or deny a renewal if the franchisee has not substantially complied with the agreement during its term.
If Clear Pest Pros decides not to award a renewal, they will provide a notice describing the reasons for the decision. The franchisee's right to a renewal is contingent on their continued compliance with the agreement's terms through its expiration date, as well as compliance with any obligations outlined in the notice from Clear Pest Pros. The franchise owner(s) and Clear Pest Pros have agreed upon new renewal Franchise Agreements, to be executed contemporaneously with a Mutual Release, which will replace the 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].