FranchiseVerdict
Clear Pest Pros logo
B61/100FDD 2026

Clear Pest Pros — Litigation & Risk

Home Services - Pest Control · FDD Items 3, 4 & 5

Back to overview

Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
61 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
1.5 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Michigan
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01MINOROnly 7 franchise units with unknown growth trajectory suggests minimal system expansion or potential contraction
  2. 02MEDNo Item 19 financial performance representations disclosed — cannot independently verify the $97,073 average net income claim
  3. 03MINORHigh royalty floor (7% of Minimum Gross Sales Requirement) creates fixed costs even during slow revenue periods, squeezing margins
  4. 04MINORWide investment range ($98,720–$192,040) indicates inconsistent startup cost structure or hidden variables not explained
  5. 05MED5-year term is relatively short; renewal/extension terms and conditions not disclosed
  6. 06HIGHFranchisor going concern status is FALSE — unclear if this means accounting uncertainty or operational viability concerns

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.