The franchise fee of $70,000 exceeds the typical range for this category by approximately $10,000-$25,000. What specific training, technology, or support justifies this premium pricing?
#1
Unit closures increased from 8 in 2022 to 22 in 2024. Can you identify the primary reasons for this 175% increase in closures and what steps are being taken to address franchisee sustainability?
#2
Top quartile unit sales of $760,107 fall approximately $77,000 below the category typical range. What is the median or average sales figure for reporting units, and how many units are currently providing Item 19 sales data?
#3
The total potential contract term of 10 years is significantly shorter than the typical 15-20 year range for home services franchises. What is the rationale for this shorter term, and are renewal options available?
#4
Your Support & Training score of 76 falls below the typical range of 79.0-90.0. What specific training and ongoing support resources are included in the franchise package?
#5
Contract Terms score of 55 is below the typical range of 60.0-65.0. Can you clarify the balance of franchisor and franchisee protections in areas such as termination rights, renewal guarantees, and modification clauses?
#6
The agreement requires minimum annual gross revenue as specified in an addendum. What are the specific revenue minimums for a new franchisee, and what are the consequences of failing to meet these targets?
#7
Post-term non-compete restrictions are 2 years and 25 miles. Has this restriction been enforced in recent litigation cases, and how many franchisees have challenged or negotiated this provision?
#8
Termination can occur with cure periods as short as 7 days for certain breaches. Can you provide specific examples of what constitutes the non-curable defaults and how frequently terminations occur due to breaches versus non-renewals?
#9
All disputes require binding arbitration in Denver, Colorado with no class action participation. How many of the 2 litigation cases involved arbitration, and what were the outcomes?
#10
Personal guarantees are required from all entity owners unless waived by the franchisor. Under what circumstances has the franchisor waived this requirement, and what percentage of current franchisees have personal guarantees?
#11
Late payment fees are $75 plus interest at the lesser of maximum legal rate or 18%. How often are these fees assessed, and what is the typical collection history?
#12
Territory is protected but not exclusive. How does the franchisor prevent encroachment, and have there been disputes over territory overlap or franchisee placement?
#13
Net unit growth is 8 units (2.1%) despite a 5.7% exit rate. What is your franchisee recruitment strategy, and what is the average time to profitability for a new unit?
#14
Transfer fee is $10,000. How many unit transfers occurred in the past year, and what approval conditions apply to transfers?
#15
Of the 1 case initiated by the franchisor and 1 case initiated against the franchisor, what were the specific disputes and how were they resolved?
#16
1-year termination rate is 1.9% while non-renewal rate is 1.6%. How do you communicate renewal intentions, and are renewal terms negotiable or locked at the franchise fee of $5,500?
#17
Investment Costs score of 70 is below the typical range of 74.0-75.0. Beyond the $70,000 franchise fee, what are realistic total startup costs, including technology fee, initial inventory, and working capital?
#18
The 1-year exit rate of 5.7% means approximately 22 units exited in the past year. How many of these exits were voluntary versus franchisor-initiated, and what demographic or geographic patterns exist?
#19
Item 19 data is available but top quartile sales are notably lower than category norms. Can you provide breakdown of sales performance by franchisee tenure, territory type, and service offerings?
#20