The 1-year turnover rate of 14.6% exceeds typical ranges for home services franchises—what percentage of these exits were franchisor-initiated terminations versus voluntary departures or closures?
#1
In 2023, there were 10 unit closures plus 10 additional exits marked as 'ceased other.' What circumstances resulted in these 10 'ceased other' exits, and how are they distinct from closures and terminations?
#2
The termination rate of 8.3% is above typical range. What are the primary reasons franchisees are being terminated, and what proportion relate to failure to meet minimum gross revenue requirements?
#3
Support and Training scores 70, below the typical range of 79.0-90.0 for this category. What specific training, ongoing education, and operational support does the franchisor provide, and how often are they updated?
#4
What is the Investment Cost score of 71 based on, and why does it fall below the typical range of 74.0-75.0? Are there hidden costs or variable expenses not reflected in the initial $54,500 franchise fee?
#5
The non-compete radius of 100 miles is significantly broader than typical (25.0-40.0 miles). What is the franchisor's rationale for this expanded restriction, and how is it enforced?
#6
With a total potential contract term of 30 years (versus typical 15.0-20.0 years), what are the conditions for renewal at years 10 and 20? Are renewal terms negotiable or set by the franchisor?
#7
Can you provide a breakdown of which franchise units have closed or been terminated since 2022, including their geographic locations, years in operation, and stated reasons for exit?
#8
The franchise agreement includes 20 non-curable defaults resulting in immediate termination. Can you provide examples of these non-curable defaults and clarify how quickly the franchisor has exercised termination rights?
#9
Regarding the minimum gross revenue requirement mentioned in financial obligations, what is the specific monthly threshold, and what happens if a franchisee falls short in a given month?
#10
The franchise requires personal guarantees from franchisee and spouse. If the business fails, what is the extent of personal liability, and are there any scenarios where personal assets beyond business investments can be claimed?
#11
How many of the 8 terminated units in 2023 and 4 in 2024 involved disputes or disagreements with franchisees, and were any of these closures contested or appealed?
#12
All disputes must be resolved through binding arbitration in Houston, Texas. Has the franchisor initiated arbitration against franchisees, and what were the outcomes and financial awards?
#13
The franchise currently has 54 units across what geographic area, and how many of these units operate in overlapping or adjacent territories? Does the franchisor define territory boundaries by ZIP code, radius, or geographic markers?
#14
Item 19 financial data is available—does this include information about average unit volumes, profitability, or revenue ranges by unit age or geography, and are there success rates published for units opened in the past 3-5 years?
#15
What is the average cost of ongoing operations (labor, marketing, equipment, insurance) for a typical 1-800-Plumber +Air franchisee, and how does the 6% royalty plus 2% ad fund compare to competitor systems?
#16
If a franchisee wants to transfer their unit, the $15,000 transfer fee applies—but does the franchisor have approval rights over the buyer, and can they refuse a transfer for any reason?
#17
Given the 2023 spike in closures and 'ceased other' exits, did the franchisor implement operational or training changes in 2024, and if so, has the reduction in exits continued into 2025?
#18