Under what conditions can Clear Pest Pros contact a Clear Pest Pros franchisee's customers?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
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- contact your customers who are delinquent in their payment of 90 days or more, initiate collection procedures on your behalf, take Royalties on Gross Sales collected and apply collection fees established in the Franchise Agreement;
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, Clear Pest Pros retains the right to contact a franchisee's customers under specific circumstances. Clear Pest Pros can contact customers who are 90 days or more delinquent in their payments. When contacting these customers, Clear Pest Pros can initiate collection procedures on behalf of the franchisee. Clear Pest Pros will then take Royalties on Gross Sales collected and apply collection fees as established in the Franchise Agreement.
This provision protects Clear Pest Pros's revenue stream and ensures that outstanding debts are pursued, even if the franchisee is not actively doing so. It also outlines a clear process for handling delinquent accounts, which can prevent disputes between Clear Pest Pros and its franchisees.
For a prospective franchisee, this means that Clear Pest Pros has a direct interest in ensuring customer payments and can intervene to recover debts. While this could be seen as an intrusion into the franchisee's business, it also provides a safety net and support in managing accounts receivable. Franchisees should be aware of the collection fees and royalty implications associated with these interventions.