factual

Under what circumstances is a Clear Pest Pros franchisee required to pay the Administrative Fee?

Clear_Pest_Pros Franchise · 2025 FDD

Answer from 2025 FDD Document

J. ADMINISTRATIVE FEE.

You must pay to us the then-current administrative fee (the "Administrative Fee") upon your request or when we are required due to your actions or request, to amend the Franchise Agreement or when you ask us to consent to various transactions or to services for which a specific fee is not imposed elsewhere in this agreement or the System.

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 the Administrative Fee under specific circumstances. This fee is triggered when the franchisee requests an amendment to the Franchise Agreement, or when Clear Pest Pros is required to make changes or provide services due to the franchisee's actions or requests, and for which a specific fee isn't already outlined in the agreement or the Clear Pest Pros system.

In practical terms, this means that if a Clear Pest Pros franchisee needs to alter the terms of their franchise agreement, such as changing the territory or ownership structure, they will likely incur the Administrative Fee. Similarly, if the franchisee requires Clear Pest Pros to intervene or provide assistance on matters not covered by existing fees, this fee will apply. The FDD does not specify the amount of the Administrative Fee.

Prospective Clear Pest Pros franchisees should be aware of this fee and carefully consider the potential situations where it might be applied. It is important to understand what types of requests or actions could trigger the Administrative Fee to avoid unexpected costs. Franchisees should seek clarification from Clear Pest Pros regarding the specific circumstances that would necessitate this fee and the typical amount charged.

While many franchise systems have fees for specific services or changes, the Administrative Fee is a more general charge that covers a broader range of situations. Franchisees should factor this potential cost into their financial planning and ensure they understand the conditions under which it may be levied.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.