For Clear Pest Pros, what was the total gross notes receivable as of December 31, 2024?

According to Clear Pest Pros's 2025 Franchise Disclosure Document, the total gross notes receivable as of December 31, 2024, was $2,585. These notes receivable primarily arise from the sale of franchises or area franchise rights and refinanced obligations, with monthly payments and imputed interest ranging from 4.0% to 12.0%. These notes are collateralized by the franchise, equipment, and personal guarantees.

For a prospective Clear Pest Pros franchisee, understanding the nature and risk associated with these notes receivable is crucial. The franchisor's financial health is partly dependent on the collection of these receivables. The FDD also indicates that $128 of notes receivable were considered past due as of December 31, 2024, which is a small portion of the total.

The notes receivable are subject to an allowance for credit losses, which was ($1,214) as of December 31, 2024. This allowance represents the franchisor's estimate of uncollectible amounts. Additionally, the current portion of the notes receivable, representing amounts due within one year, was $578. The long-term portion of the notes receivable was $793.

Overall, the notes receivable represent a significant asset for Clear Pest Pros, but they also carry inherent risks of non-payment. Prospective franchisees should consider the franchisor's history of managing and collecting these receivables as an indicator of financial stability.