Under what circumstances is a Referral Fee required when transferring a Clear Pest Pros franchise?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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's 2025 Franchise Disclosure Document, a Referral Fee is required in specific situations when transferring a franchise. If the franchisee lists the Clear Pest Pros business with a broker, lead referral network, or similar entity, they will have to pay Clear Pest Pros's then-current Referral Fee, along with any commissions, broker fees, or other similar expenses. This also applies if the transferee is referred to the franchisee or Clear Pest Pros by a broker, lead referral network, or similar entity.
This means that if a franchisee uses a third party to facilitate the sale of their franchise, Clear Pest Pros will collect a Referral Fee on top of any fees the franchisee owes to the broker or referral network. This fee is in addition to the Transfer Fee and other outstanding obligations like royalties and fees owed to Clear Pest Pros. The amount of the Referral Fee is not specified in this section but is referenced as the 'then-current' fee published in the Operations Manual.
For a prospective franchisee, this highlights the importance of understanding all potential costs associated with transferring a Clear Pest Pros franchise. It would be prudent to review the Operations Manual to determine the exact amount of the Referral Fee and to consider this cost when deciding whether to use a broker or referral network to sell their franchise. Franchisees should also be aware that Clear Pest Pros must approve the transfer and may have specific requirements for the transferee, such as completing the Initial Training program.