The technology fee of $895 monthly is substantially higher than the typical range of $156.50-$599.00 for home services franchises. What specific technology services and software are included in this fee, and how has this fee changed historically?
#1
Your franchise fee of $60,000 exceeds the typical range for this category. What is included in this initial fee, and does it cover initial inventory, training, equipment, or marketing materials?
#2
The system has grown from 2 units in 2022 to 45 units in 2024, yet reports zero closures and zero terminations. Can you provide references to contact from the 2022 cohort to verify their current operating status and satisfaction?
#3
With a 0% turnover rate reported, can you explain what factors you attribute to this result, and how does this compare to historical performance if the franchise system predates 2022?
#4
The non-compete clause restricts activity within 25 miles for 2 years post-exit. How is compliance monitored, and have there been any enforcement actions or disputes regarding non-compete violations?
#5
Your contract allows for a maximum 30-year total potential term (10 years initial plus 2 ten-year renewals), which exceeds the typical 15-20 year range. What are the 7 renewal conditions franchisees must satisfy, and how frequently do franchisees successfully renew versus choose not to renew?
#6
The renewal fee is $10,000 per renewal term. Does this fee cover renovation requirements, technology updates, or other reinvestment obligations, or is it separate from capital improvement costs?
#7
Item 19 financial performance data is included. How many units reported this data, and does the $819,593 average gross sales figure represent a typical unit or a range of performance outcomes? Can you provide median sales data?
#8
Given the litigation score of 80/100 (above typical range for this category), are there any pending legal matters, regulatory investigations, or disputes not captured in the 3-year litigation history that prospective franchisees should know about?
#9
The Support & Training score is 75, below the typical 79.0-90.0 range. What initial and ongoing training is provided, how frequently is training updated, and what ongoing support does the franchisor provide to franchisees?
#10
The Ongoing Fees score is 60 (below the typical 62.0 range). Can you clarify the total annual ongoing fee burden when combining the 7% royalty, 2% ad fund, and $895 monthly technology fee?
#11
Your termination clause permits immediate termination for 16 non-curable defaults but allows 30-day cure for other defaults, with a 10-day cure for regulatory compliance violations. What are these 16 non-curable defaults?
#12
All disputes are subject to binding arbitration with waiver of jury trial and class action rights. How many arbitration disputes has the franchisor been involved in, and what are the typical costs and timelines for arbitration under your agreement?
#13
The franchise agreement requires personal guarantees from all owners and their spouses for all amounts payable. Can you explain the scope of this personal guarantee and whether it extends to guarantees by spouses who will not be involved in operations?
#14
The franchisor requires franchisees to indemnify it from all expenses and losses. Can you provide an example of a claim that triggered indemnification, and what protections exist for franchisees from frivolous indemnification claims?
#15
Your investment score is 72, below the typical 74.0-75.0 range. Beyond the $60,000 franchise fee, what are the total startup costs, and does this include working capital for initial operations?
#16
With 45 current units and no reported closures since 2022, can you confirm whether any of the original 2 units from 2022 are still operating, and provide data on unit survival rates by age?
#17
The agreement includes 7 renewal conditions. If a franchisee fails to meet even one renewal condition, can the franchisor refuse renewal, and would the franchisee have the right to continue operating or be required to exit?
#18
Can you provide the written modification procedures and any recent examples of how the franchise agreement has been modified for new franchisees, versus what existing franchisees agreed to?
#19