What specific circumstances led to the 5 unit closures in 2023, and what does 'ceased other' mean in the unit history classification?
#1
The Financial Performance score is 40/100, well below the typical range of 54-60 for home services franchises. What financial information would clarify this low score, and will you provide Item 19 (Earnings Claims) documentation?
#2
Can you explain why the 3-year CAGR is -2.38%, indicating system contraction, and what strategies are in place to return to unit growth?
#3
The non-compete clause restricts activity for 5 years within 50 miles, exceeding typical restrictions. What was the rationale for these extended restrictions, and are there any waivers or modifications available?
#4
Why is the initial contract term 15 years when the typical range for this category is 10 years, and how does this affect your long-term commitment?
#5
The renewal term is only 1 year compared to the typical 5-10 years. Does this mean renewal is not guaranteed, and under what conditions would renewal be denied?
#6
What are the specific renewal conditions (you list 2) required to renew after the 15-year initial term, and how difficult are they to meet?
#7
The termination causes count is 10, below the typical 14-21. What are the 10 termination causes listed in the agreement, and are there any subjective triggers like 'failure to maintain standards'?
#8
As a concrete leveling franchise with no reported litigation, how do you handle customer complaints or property damage claims, and who bears liability?
#9
The personal guarantee and indemnification clause requires all interest holders to personally guarantee obligations jointly and severally. Does this apply to passive investors, and are there any limitations on indemnification?
#10
Why has there been zero turnover in the past year when the typical range is 1.1-12.43%? Is this due to strong unit performance, or are there other factors?
#11
Can you provide references from the 5 franchisees who transferred or closed in 2023 to understand their reasons for exiting?
#12
What support and resources does the franchisor provide given the low Financial Performance score, and how successful are franchisees actually at generating revenue?
#13
The transfer fee is $7,500 with no renewal fee listed. Are there any other hidden costs for transfers or renewals not captured in the FDD?
#14
What is the typical franchisee investment breakdown for the $50,000 franchise fee, and what additional working capital is typically needed to launch?
#15
Given the 5-year non-compete within 50 miles, how is 'primary area' defined, and does it include all A-1 Concrete Leveling locations nationwide or just your assigned territory?
#16
How many current units are company-owned versus franchisee-owned, and what is the franchisor's track record with owned units compared to franchised units?
#17