Is an unauthorized transfer of the Clear Pest Pros Agreement a violation?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that we have entered into this Agreement with you based on your personal qualifications, experience, skills, character, etc. Thus, you cannot Transfer this Agreement. "Transfer" shall mean any voluntary, involuntary, direct, or indirect, in whole or in part, assignment, sale, gift, encumbrance, lease, merger, bequest, change in control, or other disposition of 1) this Agreement or any rights thereunder, 2) the Clear Pest Pros Business or its assets, 3) any part of your ownership interest in the assets of the Clear Pest Pros Business, or 4) any part of your the equity/ownership interest in the Franchisee entity, or a grant of an option, warrant or right to acquire an equity or ownership interest, including but not limited to by divorce, insolvency, probate or intestate succession, trust, or other operation of law. All Transfers require our prior written approval and subject to the conditions below. Any such Transfer without our prior written approval, will be void and will constitute a breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, an attempt to make an unauthorized transfer of the Franchise Agreement constitutes a violation that can lead to automatic termination of the agreement. Clear Pest Pros enters into the agreement with a franchisee based on their specific qualifications, experience, skills, and character.
The FDD states that the franchisee cannot transfer the agreement, defining "Transfer" broadly to include any voluntary, involuntary, direct, or indirect assignment, sale, gift, encumbrance, lease, merger, bequest, change in control, or other disposition of the agreement, the Clear Pest Pros Business or its assets, or any part of the ownership interest in the franchisee entity. This also includes granting an option, warrant, or right to acquire an equity or ownership interest, including through divorce, insolvency, probate, or other operation of law.
Any transfer without Clear Pest Pros's prior written approval is considered void and a breach of the agreement. While Clear Pest Pros will not unreasonably withhold approval if certain conditions are met, the decision remains at their sole discretion. This provision ensures that Clear Pest Pros maintains control over who operates a franchise under its brand and that any new franchisee meets their standards.