What is the 'System' that Clear Pest Pros franchisees utilize?

We award to persons, who meet our qualifications and who are willing to undertake the investment and effort, a franchise to own and operate a Clear Pest Pros Business offering the services and products we authorize and approve while utilizing our business formats, methods, procedures, signs, standards, specifications, and Marks (the "System").

You acknowledge and agree that the operation and maintenance of your Clear Pest Pros Business according to System Standards is essential to preserve the goodwill for the Marks and all Clear Pest Pros franchisees. Therefore, at all times during the term of this Agreement, you agree that the Managing Owner or, if applicable, the Designated General Manager, devote your full-time best efforts to operate and maintain your Business according to each and every System Standard, even if you believe that a System Standard is not in the System's or your franchise's best interests. System Standards may be periodically modified and supplemented during the term of this Agreement and you must comply with any such changes immediately upon notice to you. Furthermore, you must use your best efforts to assure that your employees and representatives conduct themselves, during business hours and/or whenever they are in a vehicle with a Clear Pest Pros logo, or a company uniform with a Clear Pest Pros patch, in a manner which is consistent with the professional and ethical image of the System.

You will offer and provide all of the Services that we periodically require for Clear Pest Pros franchisees, and in the manner we prescribe.

System Standards, to be specified and periodically amended in the Operations Manual or otherwise in writing, may include, without limitation, standards and specification regarding:

• 1. use and display of the Marks;
• 1. Services and products which we authorize you to sell to the public;
• 1. the use of supplies and equipment;
• 1. a dress code, during business hours, for you, your employees and your representatives;
• 1. suppliers and vendors you may use for advertising, inventory, equipment, the purchase of uniforms for you, your employees and your representatives, and other services or products you may use in or in the operation of the Clear Pest Pros Business;
• 1. vehicle type, model, color, supplier, trademark representation, and appearance (no rust or body damage). These specifications are included in our Operations Manual. All vehicles purchased or leased for the Clear Pest Pros Business are to be, and maintained, in a "good" condition as defined by KELLY BLUE BOOK ("good" condition means that the vehicle is free of any major defects). The paint, body and interior must have only minor (if any) blemishes, and there may not be any major mechanical problems. In states where rust is a problem, this should be very minimal. All vehicles used in connection with the business are to be decaled as required by us

and the decals are to be free of defects. You will be required to submit photos of all vehicles used in connection with the Clear Pest Pros Business in the manner and format we prescribe;

• 1. business forms and stationary;
• 1. designated and approved suppliers for business assets and supplies using our Marks;
• 1. types and amounts of insurance coverage;
• 1. compliance with applicable laws including obtaining required licenses and permits, payment of all taxes, assessments, fees, fines, and penalties arising out of the operation of the Clear Pest Pros Business;

You acknowledge that we have developed the System to offer and sell Services that will distinguish the Clear Pest Pros Business from other businesses that offer similar services valued at different prices and with less attention paid to service quality and customer service. You agree to offer Services and to operate the Clear Pest Pros Business in such a manner that emulates and enhances the image we intend for the System. You further acknowledge and agree that each aspect of the System is important not only to you but also to us and to other Clear Pest Pros franchisees in order to maintain the highest operating standards, achieve system-wide uniformity and increase the demand for the Services rendered by Clear Pest Pros franchisees.

You shall meet and maintain the highest safety standards and ratings applicable to the operation of the Clear Pest Pros Business. You shall furnish to us within two (2) days of your receipt thereof, a copy of all inspection reports and any violation or citation that indicates your failure to maintain federal, state, or local safety standards in the operation of the Clear Pest Pros Business.

Source: Item 22 — CONTRACTS (FDD pages 67–68)