Under what conditions can the conditional assignment of the Clear Pest Pros franchise be triggered?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
A. AUTOMATIC TERMINATION WITHOUT NOTICE.
This Agreement will automatically terminate without notice or an opportunity to cure upon the occurrence of any of the following:
-
- If you make an assignment for the benefit of creditors, file a voluntary petition in bankruptcy, are adjudicated bankrupt or insolvent, file or acquiesce in the filing of a petition seeking reorganization or arrangement under any federal or state bankruptcy or insolvency law, or consent to or acquiesce in the appointment of a trustee or receiver for you or the Clear Pest Pros Business.
-
- If proceedings are commenced to have you adjudicated bankrupt or to seek your reorganization under any state or federal bankruptcy or insolvency law, and such proceedings are not dismissed within 60 days, or a trustee or receiver is appointed for you or the Clear Pest Pros Business without your consent, and the appointment is not vacated within 60 days.
-
- You attempt to make an unauthorized transfer of this Agreement or the Clear Pest Pros Business in violation of any of the transfer provisions contained in Section 10 of this Agreement.
B. AUTOMATIC TERMINATION WITH NOTICE.
We have the right to terminate this Agreement, immediately, and without the opportunity to cure, effective upon delivery of written notice to you, or any of the following:
Your Managing Owner and, if applicable, Designated General Manager, fail to attend or successfully complete the Initial Training within four (4) months of signing this Agreement and/or fulfill all the pre-training requirements, which include the payment of all monies due to us, and the completion of all the required tasks as designated on the Clear Pest Pros owners' intranet website and in the Operations Manual;
You fail to commence operation of the Clear Pest Pros Business within four (4) months of signing this Agreement;
You have made or make any material misrepresentation or omission in purchasing the Franchise or operating the Clear Pest Pros Business;
You receive from us three (3) or more notices to cure the same or similar defaults or violations of this Agreement, within any two (2)-year period of time, regardless of whether these defaults were cured after notice was sent to you;
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Clear Pest Pros Franchise Disclosure Document, the franchise agreement can be automatically terminated without notice under specific conditions. These include scenarios where the franchisee makes an assignment for the benefit of creditors, files for bankruptcy, or consents to the appointment of a trustee or receiver. Additionally, the agreement can be terminated if proceedings are initiated to declare the franchisee bankrupt and are not dismissed within 60 days, or if a trustee or receiver is appointed without the franchisee's consent and the appointment is not vacated within 60 days. Furthermore, attempting an unauthorized transfer of the franchise agreement or the Clear Pest Pros business can also trigger automatic termination.
Clear Pest Pros can also terminate the agreement with notice if the Managing Owner or Designated General Manager fails to attend or successfully complete the Initial Training within four months of signing the agreement, or fails to meet pre-training requirements such as payments and tasks on the Clear Pest Pros intranet. Failure to commence business operations within four months of signing the agreement, making material misrepresentations or omissions, or receiving three or more notices to cure similar defaults within a two-year period can also lead to termination.
These termination conditions are typical in franchise agreements to protect the Clear Pest Pros brand and ensure franchisees adhere to operational standards. Prospective franchisees should carefully review these conditions to understand their obligations and the potential consequences of non-compliance. Understanding these terms is crucial for maintaining a successful and compliant Clear Pest Pros franchise.