What must be sent to Clear Pest Pros after executing the required agreements?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
gnature line as the first Managing Owner.
Before attending the Initial Training and/or upon any change to the legal entity ownership, you must submit to us a corporate resolution, or similar action, which states the name of the corporation or LLC, the legal names of all of the partners or shareholders, the percentage of ownership that each member controls, their place of residence and their agreement to be bound by the terms of the Franchise Agreement. In the case of multiple owners, you must submit a dispute resolution procedure acceptable to us in our sole discretion that states what you will do in the event that there is a conflict between any owners of the franchisee entity. In addition, at all times, the owners who have executed the Franchise Agreement must own 100% of the ownership interest in the franchisee entity. The remaining owners must sign a written confidentiality and non-compete agreement in the form we prescribe.
The owners of the franchised business and their spouses must personally guarantee the Clear Pest Pros Business. The Managing Owner, Designated Manager and/or key employees will need to execute non-disclosure and confidentiality agreements that we have approved. (Section 6.C. of the Franchise Agreements). We do not have a standard form, as laws vary between states; however, we do require that such agreements will prohibit disclosure, by the employee to any other person or legal entity, of any trade secrets, customer lists, or other information, knowledge, or know-how regarding the System or the operation of the Clear Pest Pros Business, which is deemed confidential or proprietary by us. Such employee non-disclosure and confidentiality agreements will, to the fullest extent permitted by applicable law, prevent employees from servicing or soliciting any of the customers of your Clear Pest Pros Business, except in their capacities as employees of the Clear Pest Pros Business. The agreements to be signed by a partner, spouse, or designated Managing Owner, will also need to include a non-compete agreement, which must comply with your state law. A fully executed copy of each agreement is to be sent to us.
ITEM 16: RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You must offer and provide only and all of the services that we periodically require for Clear Pest Pros franchisees in the manner that we prescribe, and you may only provide the services we have approved for Clear Pest Pros Businesses ("Services"). You may not market or perform any other services, except the Services, without our express, prior written approval. There are no limits on our right to periodically change required and/or authorized services and service categories, and we may do so at our discretion.
As described in Item 12, you may not advertise or service in any way, any customers outside the Territory, even if the area has not been awarded to another Clear Pest Pros Business or Company Store, without our prior written permission.
We will provide you with guidance regarding setting minimum and/or maximum pricing of services and hours of operation, but you will set your own pricing and schedules. You are required to hire all employees and make any other staffing decisions. You, or if you are an entity, your Managing Owner or Designated General Manager, will be required to devote your full-time best efforts to operate and maintain your Business. If established, we may provide referrals through our NORA program. Participation in this program is optional.
You are required to use our approved suppliers for uniforms and branded materials, vehicle wraps, certain supplies and equipment, and other inventory and materials that you may be required to use in operation of the Franchises Business.
ITEM 17: RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION.
This table lists certain important provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.
THE FRANCHISE RELATIONSHIP
[Remainder of Page Intentionally Left Blank]
| Provision | Section in Franchise agreement | Summary | |
|---|---|---|---|
| t. | Integration/merger clause | Section 15.L | Only the terms of the Franchise Agreement are binding (subject to state law). Any representations or promises outside of the disclosure document and Franchise Agreement may not be enforceable. Notwithstanding the foregoing, nothing in any agreement or any related agreement is intended to disclaim the representations made in this Franchise Disclosure Document, its exhibits and amendments. |
| u. | Dispute resolution by arbitration | Sections 15.F.1 and 15.F.2 | You must bring any disputes arising out of the Franchise Agreement or any other agreement with us to our President prior to bringing a claim before any third party in an attempt to resolve the dispute internally. After exhaustion of this internal dispute resolution procedure, at our option, all claims or disputes between you and us must be submitted first to binding arbitration in Ann Arbor, Michigan, in accordance with the American Arbitration Association’s Commercial Arbitration Rules then in effect (subject to state law). |
| v. | Choice of forum | Section 15.F.3 | All claims not subject to arbitration must be commenced in the state or federal court of general jurisdiction, in Washtenaw County, Michigan or the United States District Court for the Eastern District of Michigan (subject to state law). |
| w. |
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Clear Pest Pros Franchise Disclosure Document, several documents and pieces of information must be submitted to Clear Pest Pros after executing the franchise and related agreements. Specifically, before attending Initial Training or if there is a change to the legal entity ownership, a franchisee must submit a corporate resolution or similar action. This document should state the name of the corporation or LLC, the legal names of all partners or shareholders, the percentage of ownership each member controls, their place of residence, and their agreement to be bound by the terms of the Franchise Agreement. If there are multiple owners, a dispute resolution procedure acceptable to Clear Pest Pros must also be submitted, outlining how conflicts between owners will be resolved.
Additionally, the owners of the franchised Clear Pest Pros business and their spouses must personally guarantee the business. The Managing Owner, Designated Manager, and key employees will need to execute non-disclosure and confidentiality agreements approved by Clear Pest Pros. A fully executed copy of each agreement is to be sent to Clear Pest Pros. At least ten days before attending Initial Training, commencing operations, or whenever a change is made to the insurance policy, the franchisee must have their insurance provider send a copy or certificate of insurance to Clear Pest Pros.
Furthermore, franchisees must deliver all access codes, static Internet protocol ("IP") addresses, and other information to facilitate Clear Pest Pros' access to data within 30 days of opening the Clear Pest Pros Business. Franchisees must also provide copies of any insurance claims or insurance cancellations within 24 hours. Failing to provide these items and information in a timely manner could result in delays in training or the commencement of business operations, and could potentially lead to a breach of the Franchise Agreement.