360clean

Can you provide details on the specific reasons for the 31 unit exits (closures and terminations) in 2022, and what changed in 2023 that resulted in near-elimination of exits?

What caused the return to high exits in 2024 with 31 units closed or terminated, and does the franchisor expect this trend to continue?

Of the 20.5% termination rate, how many were for performance-related reasons versus contractual violations, and what specific performance metrics trigger termination?

Why is the royalty rate of 14% significantly higher than the 6.0-8.13% typical range for cleaning franchises, and what additional value or services justify this premium?

What accounts for the wide disparity in unit performance, with bottom quartile units generating only $25,812 in gross sales while top quartile units generate $596,872?

Given the median sales of $175,176 annually, how do franchisees typically achieve profitability after accounting for royalties (14%), technology fees ($1,200/year), and ad fund (1%)?

The system shows no unit transfers (0%) in the past year despite ongoing operations. Is this because transfers are not permitted, or is there insufficient demand from buyers?

Can you clarify why the territory is marked as 'protected' but not 'exclusive' and whether the franchisor can place additional 360clean units within a franchisee's protected territory?

What specific conditions must be met prior to renewal of the franchise agreement, and how often do franchisees fail to meet these conditions?

The renewal fee is $2,000 for a 10-year renewal. Are there required renovations or capital investments that franchisees must complete to be eligible for renewal?

Given the significant decline in system health score (26/100), what specific operational or support challenges is the franchisor aware of?

Has the franchisor conducted an exit survey or analysis of the 31 units that closed or were terminated in 2024 to identify root causes?

The technology fee of $100/month is below industry typical range. What software, systems, or technology services are included in this fee, and are there additional costs for required platforms?

Can you provide the Item 19 financial performance statement that shows gross sales, operating costs, and net income by unit volume to validate the sales figures provided?

What support or remediation programs does the franchisor offer to underperforming units before considering termination?

The non-compete clause restricts franchisees for 2 years post-termination but does not specify a geographic radius. How does the franchisor enforce the 2-year restriction without defined geographic limits?

In arbitration disputes with the franchisor, are there any documented outcomes or settlements from prior cases that illustrate how arbitration has typically resolved franchisee disputes?

Given the requirement for personal guarantees from shareholders and the 4/5 liability score, what insurance coverage do you recommend franchisees obtain to protect against personal liability?