factual

Which sections of the Clear Pest Pros Franchise Agreement address the franchisee's advertising obligations?

Clear_Pest_Pros Franchise · 2025 FDD

Answer from 2025 FDD Document

s needed, with respect to:

    1. New products, services, and methods that we may have discovered or have developed for the System (Sections 3 and 7 of the Franchise Agreement);
    1. The purchase and use of supplies and products (Sections 3 and 7 of the Franchise Agreement);
    1. The formulation and implementation of marketing, advertising, and promotional programs using the merchandising, advertising, and research data and advice as we may, periodically, develop for use in your local market (Sections 3 and 7 of the Franchise Agreement);
    1. The financial and daily operation of the Clear Pest Pros Business including its accounting and record keeping functions (Sections 3 and 7 of the Franchise Agreement);
    1. Other business and marketing advice (Sections 3 and 7 of the Franchise Agreement);
    1. Support for our required franchise software management system, as defined in the Licensing Agreement (Exhibit B of Franchise Agreement);
    1. Periodic modifications to the Operations Manuals and periodic modifications to the System Standards (Section 3.E of the Franchise Agreement);
    1. Periodic refresher training courses and conferences, not to exceed one per year. (Section 3.A of the Franchise Agreement);
    1. Provide the telephone and technology services described in Section 11.6 and 11.7 below.

11.3 Estimated Typical Length of Time to Open Clear Pest Pros Business

The estimated typical length of time between the signing of the Franchise Agreement and payment of any consideration for the Clear Pest Pros Business, and the opening of the Clear Pest Pros Business, is approximately 90 to 120 days. Factors affecting this length of time usually include normal business startup considerations, completion of training, whether or not you have an existing Office Site in the Territory, and whether or not you obtain outside financing. However, you must commence operation of the Clear Pest Pros Business within four (4) months of signing the Franchise Agreement and if you do not, then we may terminate the Franchise Agreement. (Section 12.B.2 of the Franchise Agreement).

11.4 Local Marketing and Advertising

Except for the marketing provided in the Initial Package, we are not required to conduct advertising for you or the System. We are not required to spend any amount on advertising in your Territory. We may provide you with advertising, promotional or marketing materials for you to use in

local advertising, but we are not obligated to do so. We will provide you, in exchange for your payment of the Technology Fee, the business phone number to be used by the Clear Pest Pros Business. This number will be forwarded to any device(s) that you choose.

You agree to actively advertise and promote the Business within the Territory. We may require you to expend a minimum amount each month on marketing, advertising, and promotional programs at the local level and, in general, recommend that you spend amounts in excess of 3% on local marketing and advertising. You must use our approved advertising and marketing materials, or receive our written approval of any and all other advertising and marketing materials before their first use. In order to obtain approval of advertising and marketing materials, you must submit such proposed advertising material to us for review at least ten business days before the proposed first use. If we take no action within such ten business day period, the materials shall be deemed disapproved, and you may not use such materials.

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 37–38)

What This Means (2025 FDD)

According to Clear Pest Pros's 2025 Franchise Disclosure Document, several sections of the Franchise Agreement outline the franchisee's advertising obligations. Specifically, Sections 3 and 7 are referenced in Item 11 regarding the formulation and implementation of marketing, advertising, and promotional programs. Section 2.G of the Franchise Agreement is also relevant, as it pertains to the use of approved advertising materials and participation in local marketing programs. Additionally, Section 1 of the Franchise Agreement describes the geographic territory where franchisees may advertise and solicit business.

Clear Pest Pros requires franchisees to actively advertise and promote the business within their designated territory. While Clear Pest Pros is not obligated to conduct advertising for the franchisee or the system, they may provide advertising and marketing materials for local use. Franchisees may be required to spend a minimum amount each month on local marketing, advertising, and promotional programs, with Clear Pest Pros generally recommending spending amounts exceeding 3% on local marketing and advertising.

Franchisees must use Clear Pest Pros's approved advertising and marketing materials or obtain written approval for any other materials before use. Clear Pest Pros retains sole discretion in approving or disapproving advertising materials, and can require franchisees to discontinue using any materials at any time, even if previously approved. Certain items, such as trucks and yard signs, must reference the Clear Pest Pros national toll-free number, which cannot be altered or removed. Franchisees may be required to purchase materials from approved suppliers or participate in local marketing programs at their own expense.

Within their territory, franchisees have the right to advertise and service customers, but they may not advertise outside the territory via print, media, or targeted web-based advertising without approval. Advertising or servicing outside the territory is a default under the Franchise Agreement and may result in a fine of the greater of $500 or 50% of the job invoice amount, and/or termination of the Franchise Agreement. Clear Pest Pros also reserves the right to implement advertising cooperatives in the future, requiring franchisees to contribute up to 2% of Gross Sales to such cooperatives.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.