911 Restoration

Can you provide details on the 5 cases where 911 Restoration was the plaintiff? What were the primary reasons for these actions (non-payment, contract violations, trademark infringement)?

What is the status and nature of the 1 pending litigation case? How long has it been pending and what is the expected resolution timeline?

The royalty rate of 9.0% is above the typical range of 6.0-8.13% for cleaning and restoration franchises. What is the justification for this higher rate compared to competitors?

Why is the transfer fee set at $5,000 when the typical range for this category is $5,500-$15,000? Are there circumstances where the transfer fee could be higher?

Can you explain the bottom quartile units generating only $81,254 in gross sales annually? What support or corrective actions does the franchisor provide to underperforming units?

The minimum monthly gross sales requirement is $33,000. What happens if a franchisee falls below this threshold for multiple consecutive months? Is this an automatic termination trigger?

The interest rate on late payments is 18% per annum. How frequently do payment defaults occur, and what percentage of terminations are related to payment issues?

Territory is protected but not exclusive. Can the franchisor open company-owned locations or award additional franchises within my territory?

The non-compete clause restricts operations within 25 miles for 2 years after exit. Has this restriction been enforced, and are there documented cases of franchisees challenging this provision?

Renewal requires meeting the franchisor's 'then-current standards' with no cap on fee increases. What is the typical renewal fee increase pattern historically? Can you provide examples from renewals in 2022 and 2023?

The mandatory binding arbitration clause specifies California as the venue. What is the average cost and timeline for disputes that have gone to arbitration, and are there any unresolved arbitration cases?

Out of the 21 units closed in 2022, how many were voluntary closures versus franchisor-initiated terminations? What were the primary reasons cited?

The system grew from 287 units to 330 units in 3 years. How many of those new units are company-owned versus franchised, and what is the breakdown of unit types by size/revenue?

Can you provide the Item 19 financial performance data broken down by territory type, franchise age, and franchisee experience level to assess how success varies across different operator profiles?

Of the 11 units that 'ceased other' in 2023, what does this classification mean? Are these closures tracked separately from voluntary transfers or franchisor terminations?

The 5-year fee projection is not provided. Can you calculate the total fees a franchisee would pay over 5 years with assumptions about sales growth (e.g., assuming 5% annual growth)?

Are there any changes to the franchise agreement, royalty structure, or support services that took effect in the past 2 years or are planned for the next 12 months?

What is the franchisee's right to audit franchisor-affiliated supplier pricing? Are there price caps or competitive bidding requirements for required suppliers?

The 6 litigation cases over the system's history represent what percentage of total franchisees ever awarded? Does this indicate systemic issues or isolated incidents?

Can you provide references from franchisees who have gone through renewal in the past 2 years, and do any of those renewals involve significant fee increases or operational requirement changes?