When is the Royalty payment due for a Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 7% of Gross Sales, for the first 12 months of operation Beginning in month 7, the greater of 7% of Gross Sales, or 7% of the Minimum Gross Sales Requirement, which shall be no less than $700 | This fee is due by automatic debit on the 10th day of each month for Gross Sales generated during the preceding month. | See Notes 1 through 5. In addition to the Minimum Royalty, the Minimum Gross Sales requirement begins in month 13 of operations. If you fail to achieve the Minimum Gross Sales, we may collect the greater of the $700 per month (the "Minimum Royalty") or 7% of the Minimum Gross Sales Requirement. |
| Brand Marketing Fee | 2% of Gross Sales. | Deducted monthly at the same time and in the same manner as the Royalty beginning in month 13 of your operation | Your contribution to our Brand Marketing Fund for the common benefit of System franchisees. See Note 6. |
| Technology Fee | $350 per month, per franchisee | Monthly | Fees for website hosting, email hosting, and other required technology or marketing related expenses. We reserve the right to increase this fee as determined by vendor(s), to include the cost to use our Call Center, and to charge an administration fee of up to 15% of the Technology Fee. |
| Software Fee | $750 per franchisee | Monthly | Fee for required software usage, covers up to 4 technicians. One-time set up fee is $650. We reserve the right to increase this fee as determined by vendors, and to charge an administration fee of up to 15% of the Software Fee. |
| Additional Training at your Location | $2,000 per person | Prior to scheduling our staff to visit your location | Payable if we send a Clear Pest Pros employee to your location for additional training; |
Source: Item 6 — OTHER FEES (FDD pages 20–28)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the Royalty fee is due by automatic debit on the 10th day of each month for Gross Sales generated during the preceding month. For the first 12 months of operation, the royalty is 7% of Gross Sales. 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.
Clear Pest Pros requires franchisees to authorize automatic debits from their business checking account for all fees due, using a form attached as Exhibit D to the Franchise Agreement. This ensures timely payment of royalties and other fees. The franchisor may periodically specify other dates for payment of the Royalty.
If a Clear Pest Pros franchisee transfers their Franchise Agreement to a new owner, the Royalty for all jobs completed prior to the transfer must be paid on the day of closing, regardless of whether the invoice(s) is paid in full. Similarly, on the effective date of termination of the Franchise Agreement, either by the franchisee or Clear Pest Pros, the franchisee must pay the Royalty for all jobs completed prior to termination.
Late payments are subject to a Late Payment Fee of 5% of the amount due or $50 per week, whichever is greater. This fee is also collected by automatic debit on the Friday following the due date for each late payment. Clear Pest Pros may increase this fee by up to 10% per year of the Term.