1-Tom-Plumber

The $1,000 monthly technology fee is significantly above industry norms for home services franchises. What specific technology platforms and services are included, and how is this fee justified compared to competitors?

Your system grew from 13 units to 43 units in 3 years, but 2024 saw 10 units exit (5 closed, 5 terminated). Can you explain the circumstances behind these closures and terminations, and whether they reflect franchisee performance or system-wide issues?

The termination rate of 11.6% is nearly double the typical range. How many of the 5 terminations in 2024 were for cause versus mutual separation, and what were the primary reasons?

With average gross sales of $1,453,648 significantly exceeding the typical range, what percentage of franchisees achieve these results? What are the top and bottom quartile performance levels?

There is 1 pending litigation case with the franchisor as plaintiff. Can you provide details on this case, the parties involved, and the expected timeline for resolution?

The non-compete clause of 50 miles is wider than typical. How strictly is this enforced, and are there any instances where franchisees have challenged or negotiated this radius?

Item 19 financial performance data is provided, but you mention 'units reporting' is not available. How many of the 43 current units provided financial data for the Item 19 disclosure?

The minimum monthly royalty of $3,000 is triggered after 4 occasions in any 12-month period when monthly royalties fall below this threshold. What percentage of your current franchisees regularly trigger this minimum, and what does the distribution look like?

Can you provide a breakdown of the 15 net unit growth in the past year between new unit openings and unit acquisitions or re-franchising?

The franchise agreement requires purchase of 'pink plungers' from designated suppliers. Are these proprietary branded items with markups, or are they sourced at competitive market rates? Can franchisees source equivalent products independently?

You indicate '17 events that result in immediate termination without cure period.' Can you provide the complete list of these 17 events and explain the frequency with which each occurs in terminations?

The personal guarantee clause requires all business owners to execute unconditional guarantees, and in community property states, potentially requires spouse signatures. Has this clause been challenged, and what is your experience with enforcement?

What support and training specifically contributes to your Support & Training score of 100, which exceeds typical benchmarks? Is this ongoing support, initial training, or both?

The system's Investment Costs score of 29 is well below the typical range. Does this reflect lower initial investment requirements, or does it indicate concerns about cost transparency or hidden fees not disclosed upfront?

With 10 years as the initial term and 2 five-year renewal options, what is the renewal rate? Do existing franchisees typically renew, and have any been denied renewal?

The transfer fee of $12,500 represents 25% of the franchise fee. For the 0% transfer rate in your data, why haven't any franchisees transferred their units, and what is your approval process for transfers?

Late payment interest is 1.5% monthly (18% annually). How often do franchisees miss payments, and have any faced legal action or foreclosure due to payment defaults?

Can you provide details on the 1 case initiated by the franchisor as plaintiff from the past 3 years? What was the outcome, and is the pending litigation related to this case or a separate matter?

Average gross sales of $1,453,648 are strong, but what is the net profit margin for a typical franchisee after accounting for all ongoing fees, required supplier purchases, and operating costs?

Are there any restrictions on the types of plumbing services franchisees can offer, or are they required to maintain specific service lines to maintain brand standards?