What specific business challenges or operational issues led to 6 unit closures in 2024, and how does the franchisor plan to prevent similar mass exits?
#1
Can you provide detailed financial performance data (Item 19 or equivalent) for units that remain open, including revenue ranges and profitability benchmarks?
#2
Why is the technology fee ($75/month) substantially lower than other franchises in this category, and what services or software are included?
#3
Given the 42.8% 1-year turnover rate, what support systems are in place to help franchisees achieve profitability and meet the 'Minimum Performance Standards' mentioned in your obligations?
#4
The contract allows termination for 24 different causes with only 5 days to cure non-payments. Can you clarify which of these 24 causes are non-monetary and allow less than 5 days to remedy?
#5
What is the rationale for the $33,750 transfer fee (2.5x the typical range) and are there any circumstances where this fee is reduced or waived?
#6
The 40-mile non-compete radius is double the typical range. How is this enforced, and would a franchisee be restricted from any automotive services within this radius for 2 years post-exit?
#7
With a 5-year initial term and only 1 renewal option (total 10 years possible), how does this compare to your competitive set, and what happens if a franchisee wants to continue beyond 10 years?
#8
Of the 6 units that closed in 2024, how many were owner-initiated voluntary closures versus franchisor-recommended exits, and what were the stated reasons?
#9
The spouse must personally guarantee all financial obligations under the franchise agreement. Are there circumstances where only the principal franchisee's guarantee is required?
#10
What are the specific 7 conditions required for renewal after the initial 5-year term, and how often do franchisees fail to meet these conditions?
#11
Can you explain the 44.2% 3-year CAGR calculation given the unit growth was 4→14→12, and what does this metric indicate about system health?
#12
The contract requires exclusive purchasing of 5 product categories from the franchisor. What is the typical markup on these products compared to market rates?
#13
What marketing and lead generation support does the franchisor provide, given that franchisees must meet 'Minimum Performance Standards' and 'actively develop their territory'?
#14
Why are there no terminated or transferred units in your recent history, only 'ceased other' closures? What exactly does 'ceased other' mean in your record-keeping?
#15
The 8.0% royalty rate is above typical. Is this rate tiered based on revenue volume, and are there any circumstances for rate reduction or suspension?
#16
With the System Health score of 0/100, what specific metrics or performance indicators are you tracking to improve unit retention and growth?
#17
Can you provide the renewal fee details—is the $3,000 non-refundable, and are there additional requirements (upgrades, retraining, facility improvements) typically imposed at renewal?
#18
How many of the original 14 units operating in 2023 are still operating today, and what percentage represent 'mature' units (3+ years in operation)?
#19
What is your target market size and realistic franchise unit count for this system, given the current contraction after rapid 2022-2023 growth?
#20