What does the royalty payment cover for a Clear Pest Pros franchise?

According to Clear Pest Pros's 2025 Franchise Disclosure Document, the royalty payment covers the use of several key elements of the Clear Pest Pros system. Specifically, the royalty provides franchisees with the right to use the Clear Pest Pros Marks, System, Territory, and Manuals. This means that the royalty fee compensates Clear Pest Pros for allowing franchisees to operate under its established brand, utilize its business methods and operational guidelines, and serve customers within their designated territory.

In practical terms, this means that a Clear Pest Pros franchisee's royalty payments are essentially for the ongoing right to be a part of the Clear Pest Pros franchise system and benefit from its brand recognition and operational support. The royalty is calculated as 7% of Gross Sales for the first 12 months. Beginning in month 7, the royalty is the greater of 7% of Gross Sales, or 7% of the Minimum Gross Sales Requirement, which shall be no less than $700. This structure ensures that Clear Pest Pros receives compensation for the franchisee's use of its system, even if the franchisee's sales are initially low.

It's important to note that Clear Pest Pros also has minimum monthly Gross Sales requirements that increase over time, starting in month 13. If a franchisee fails to meet these minimums, Clear Pest Pros may collect a royalty based on the minimum sales level, in addition to other potential remedies. This policy incentivizes franchisees to actively grow their business and maintain a certain level of performance. The royalty payments are due on the 10th day of each month, collected via automatic debit, for the preceding month's gross sales.