Under what condition are transfer fees collectable by Clear Pest Pros?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
ement, (b) you will not hold any security interest reserved in the business, and (c) you will enter into a comfort letter assuring us that the transferee will meet its obligations under the Franchise Agreement, and reaffirming your guaranty of the Franchise Agreement.
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.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, a transfer fee is required when transferring ownership of a franchise. Specifically, the transfer fee is due upon Clear Pest Pros' preparation of the necessary transfer documentation, such as the consent to transfer and assignment agreement or the transferee's franchise agreement. Once these documents are prepared, the transfer fee becomes non-refundable.
In the event that a franchisee is awarded their Clear Pest Pros business as a result of purchasing the assets of a business owned by a previous franchisee, the new franchisee promises to pay Clear Pest Pros the then-current transfer fee if it was not paid by their predecessor.
Prospective franchisees should note that the transfer of a Clear Pest Pros franchise requires the franchisor's prior written approval and is subject to certain conditions. These conditions include the transferee completing the initial training program, assuming all outstanding obligations to customers, and signing a general release of claims against Clear Pest Pros. Additionally, Clear Pest Pros must approve the terms of the transfer and determine that the price and terms of payment will not adversely affect the transferee's operation of the business.