When is royalty payment due for a Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
ation. We will draft the Royalty from your bank account on the 10th day of each month for the preceding month. You must pay the Royalty by electronic funds transfer or by such other means as we may specify. We may periodically specify other dates for payment of the Royalty.
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- Before opening your Clear Pest Pros Business, you must sign and deliver to us the prescribed form of authorization to debit the Clear Pest Pros Business's checking account automatically for all fees due to us which is attached to the Franchise Agreement as Exhibit D.
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- As a franchisee, if you fail to achieve the minimum level of monthly Gross Sales for a period of three or more consecutive months, we may collect a Royalty equal to what you would have been assessed had you achieved the minimum level of Gross Sales, in addition to other remedies. There is no minimum level of Gross Sales required for the first 12 months. For months 13 to 24, the minimum level of monthly Gross Sales is $5,000 per month.
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 on the 10th day of each month. This payment covers the gross sales generated during the preceding month. Clear Pest Pros will draft the royalty payment from the franchisee's bank account automatically on this date.
To facilitate this process, before opening their Clear Pest Pros business, franchisees must sign and deliver a form authorizing Clear Pest Pros to debit their business checking account automatically for all fees due. This authorization is included as Exhibit D to the Franchise Agreement. The royalty is a percentage of gross sales, which includes all revenue from services and products, less sales tax and bona fide refunds. Commissions paid to lead sources are subject to the royalty.
If a Clear Pest Pros franchisee transfers their Franchise Agreement to a new owner, all royalties for jobs completed before the transfer must be paid on the closing day, regardless of whether the invoices have been fully paid. Similarly, upon termination of the Franchise Agreement, the franchisee must pay all royalties for jobs completed before the termination date. Clear Pest Pros retains the right to periodically specify other dates for royalty payments, so franchisees should stay informed of any changes to the due date.