Aire Serv

Of the 4 litigation cases initiated by the franchisor over the past 3 years, what were the specific grounds for each case (e.g., non-payment, breach of standards, non-compete violations)?

Can you provide the outcomes of these 4 cases—were they settled, dismissed, or decided in the franchisor's favor, and what were the financial or operational consequences?

Why does the franchise agreement include only 12 termination causes when the industry standard for home services franchises is 14-21? What specific protections does this provide to franchisees?

Given the royalty rate of 5.0% is below typical (6.0-7.0%), are there any adjustments or escalations scheduled, or is this rate permanent for the franchise agreement term?

Can you explain why the technology fee of $89.5/month is significantly lower than typical industry rates ($156.5-$599.0/month)? What services and support does this fee cover?

The system requires achieving annual gross sales in the top 90% of franchisees beginning in year 2—how is this benchmark calculated, and what are the consequences for missing this target?

What triggered the increase in closures from 7 units in 2022 to 11 units in 2024? Were these franchisor-initiated terminations or voluntary closures?

Of the 14 units that transferred in 2024, were all transfers approved by the franchisor, and what screening process do you use for incoming franchise buyers?

The non-compete restriction is 2 years within a 25-mile radius—how aggressively does the franchisor enforce this, and what happens if a former franchisee violates it?

Can you provide a detailed breakdown of the financial obligations clause requiring $10/day late fees plus interest? What is the specified interest rate?

Since territory is protected but not exclusive, under what circumstances would the franchisor open a competing location near an existing franchisee?

What is the approval process and cost for products, services, and equipment sourced from designated sole-source vendors? Can franchisees propose alternative suppliers?

The median gross sales of $1,084,793 is above typical—what percentage of franchisees actually achieve this level of revenue, and what are the factors distinguishing high performers?

What support and training does the franchisor provide to help new franchisees reach the top 90% sales target required in year 2?

Are there any discrepancies between the franchise agreement terms and the actual practices described by current franchisees regarding territory protection or operational control?

What is the renewal fee of $5,000 used for, and are there any other costs or conditions associated with exercising the renewal option?

How many franchisees have failed to renew at the end of their initial 10-year term, and what were their stated reasons?

Can you provide references from at least 10 franchisees, including both high performers and those at or below median sales, to discuss their actual experience with litigation, enforcement, and support?

Joint and several personal guarantees are required from all owners holding 5% or more—does this include spouses, and under what circumstances could the franchisor pursue personal assets in case of default?