When transferring a Clear Pest Pros franchise, what outstanding fees, beyond royalties, must be paid?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
8. you pay us:
- a. our then-current Transfer Fee, as published in our Operations Manual. The Transfer Fee is due upon our preparation of the required transfer documentation (consent to transfer and assignment agreement and/or preparation of transferee's franchise agreement), and is non-refundable at such time;
- b. all Royalties for completed jobs up through the date of closing, fees, amounts owed under any promissory notes with us, Late Payment Fees, Late Report Fees, NSF Fees, Interest Fees, and all other fees or amounts owed to us, plus interest; and
- c. Our then-current Referral Fee, all commissions, broker fees or other similar expenses if: (i) you list the Clear Pest Pros Business with a broker, lead referral network or similar entity; or (ii) the transferee is referred to you or us by a broker, lead referral network or similar entity;
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, a franchisee must pay several fees when transferring their franchise to a new owner. In addition to royalties for completed jobs up to the closing date, the franchisee is responsible for the then-current Transfer Fee, as specified in the Clear Pest Pros Operations Manual. This Transfer Fee is due upon the preparation of the transfer documents and is non-refundable once paid.
Beyond the Transfer Fee and royalties, the franchisee must also settle all other outstanding financial obligations to Clear Pest Pros. This includes any amounts owed under promissory notes, Late Payment Fees, Late Report Fees, NSF Fees (Non-Sufficient Funds Fees), and Interest Fees. Essentially, any outstanding debt to Clear Pest Pros must be cleared before the transfer can be completed.
Furthermore, if the franchisee used a broker or referral network to find a buyer, they are responsible for paying Clear Pest Pros' then-current Referral Fee, along with any commissions, broker fees, or similar expenses incurred. This ensures that Clear Pest Pros is compensated for any role they may have played in facilitating the transfer through their network. Therefore, a franchisee looking to transfer must account for not only the transfer fee and outstanding royalties, but also any other outstanding fees and potential referral fees.