The franchise fee of $58,500 exceeds the category typical range by approximately $18,500-$38,500. What specific services, training, or support justify this premium pricing compared to competitors?
#1
Your non-compete clause extends for 3 years within 50 miles of the territory, which is longer than the typical range of 0-2 years. Can you explain the business rationale and whether this term is negotiable?
#2
What are the specific 3 renewal conditions referenced in the franchise agreement, and under what circumstances might renewal be denied?
#3
The system shows only 1 closure in 3 years while growing from 71 to 88 units. What factors have driven this low attrition rate compared to industry benchmarks?
#4
Can you provide details about the 1 unit closure that occurred in 2024, including the reason for closure and whether it was initiated by the franchisor or the franchisee?
#5
The agreement requires binding arbitration with mandatory mediation first. Has the franchisor arbitrated disputes with franchisees, and if so, what were the outcomes and types of disputes?
#6
Personal guarantees and spousal guarantees are required. If a franchisee defaults, can the franchisor pursue collection against personal assets of the owner and spouse, or are there limiting provisions?
#7
The indemnification clause requires franchisees to indemnify the franchisor from losses and expenses. Can you provide examples of situations where this indemnification has been invoked?
#8
Transfer fee is $10,000. Are there any additional fees, approval requirements, or conditions that apply when a franchisee wishes to transfer the franchise to another party?
#9
The territory is protected but not exclusive. Does this mean the franchisor reserves the right to place additional units in your territory, or can existing franchisees block new unit placement?
#10
With zero terminations documented over 3 years, what specific contract violations or performance failures would trigger franchisor termination rights?
#11
The non-renewal rate is 0%. Are there specific performance benchmarks or financial thresholds franchisees must meet to qualify for renewal, and what constitutes failure to meet renewal eligibility?
#12
Financial performance data is available (Item 19). Are there meaningful differences in performance between top-performing and underperforming units that might indicate territory quality variance?
#13
The technology fee of $315 annually is charged. What specific technology services, software, or systems does this cover, and how frequently is this fee adjusted?
#14
With growth of 11.4% in the past year, how many of the new 9 units were acquired through new franchisee recruitment versus acquisitions of existing units?
#15
The franchise agreement includes waivers for jury trials and class action proceedings. Has the franchisor ever had to enforce these waivers, and what was the context?
#16
Can you clarify whether the territory protection against encroachment applies only to competing property management franchises, or does it extend to any competitive business model in property management?
#17
Are there renewal fees charged when exercising the 1 renewal option, or are the only fees the standard annual royalties and technology charges?
#18
The 10-year initial term is lengthy. Can the franchisor modify royalty rates, service requirements, or operational procedures during the initial term, or are these locked in?
#19
Given the very low turnover rate, can you connect me with franchisees from different years of the system (early, mid-period, and recent) to discuss their actual experience and satisfaction?
#20