Under what circumstances related to bankruptcy or insolvency will the Clear Pest Pros agreement automatically terminate without notice?

According to Clear Pest Pros's 2025 Franchise Disclosure Document, the franchise agreement will automatically terminate without notice if certain bankruptcy or insolvency-related events occur. This means that Clear Pest Pros can immediately terminate the agreement without providing an opportunity for the franchisee to correct the situation.

Specifically, the agreement terminates automatically if the franchisee makes an assignment for the benefit of creditors, files a voluntary bankruptcy petition, is adjudicated bankrupt or insolvent, files or acquiesces to a petition seeking reorganization under bankruptcy or insolvency law, or consents to the appointment of a trustee or receiver for the franchisee or the Clear Pest Pros business.

Additionally, the agreement will automatically terminate if proceedings are initiated to have the franchisee adjudicated bankrupt or to seek reorganization under bankruptcy or insolvency law, and these proceedings are not dismissed within 60 days. Similarly, if a trustee or receiver is appointed for the franchisee or the Clear Pest Pros business without the franchisee's consent, and the appointment is not vacated within 60 days, the agreement will also automatically terminate. These terms are typical in franchise agreements to protect the franchisor's interests in cases of severe financial distress of the franchisee.