Arubah

The franchise fee of $25,000 is significantly below the typical range of $39,500-$54,625 for Health & Beauty franchises. What accounts for this lower initial investment, and are there any hidden startup costs not reflected in the franchise fee?

Your Financial Performance score of 40/100 is notably below the typical range of 53-60. Does the franchise provide Item 19 financial performance data, and if not, what documentation is available regarding average unit volumes, profitability, or revenue ranges?

The Territory score of 65/100 falls below the typical range of 75-85. Since the territory is protected but not exclusive, how does the franchisor define territory boundaries, and what specific protections prevent franchisor-authorized encroachment within the designated area?

The agreement lists 14 termination causes, which is below the typical range of 15-21. Can you provide the complete list of all termination causes, and clarify which of these are curable versus non-curable?

There are only 5 renewal conditions listed compared to a typical range of 6-9. What are the specific conditions franchisees must satisfy to renew their agreement after the initial 10-year term, and what happens if conditions are not fully met?

The non-compete restriction is 5 miles, at the lower end of the typical 5.75-25 mile range. After the 2-year non-compete period expires, can franchisees operate a competing health and beauty business within 5 miles of their former location?

With only 4 current units and 3 units 1 year ago, how long has this franchise system been operating, and what is the franchisor's growth strategy for scaling the franchise?

The franchise has experienced zero litigation cases. Has the franchisor received any complaints, regulatory inquiries, or disputes that did not result in formal litigation, and if so, how were these resolved?

The agreement requires binding arbitration at the franchisor's headquarters location. What are the typical costs and timelines for arbitration disputes, and has the franchisor arbitrated any franchise disputes historically?

Personal guarantees are required from all owners and their spouses. In cases where a franchise is transferred or sold, are the original owners released from their personal guarantee obligations, or do they remain liable?

The technology fee of $275 is a separate ongoing cost. What technology systems or tools are included, and can franchisees opt out of any technology services or select alternative vendors?

With a 2-year and 5-mile non-compete, what specific business activities are prohibited? For example, can former franchisees work as employees for competing health and beauty businesses during the non-compete period?

The franchise has grown 1 unit in the past year (from 3 to 4 units). Are all 4 current units profitable, and what is the average time to profitability for new franchise locations?

The agreement provides only a 10-day cure period for payment defaults. What constitutes a payment default (for example, is a single missed royalty payment enough to trigger termination)?

Franchisees must indemnify the franchisor against all losses related to business operations. Are there any exclusions or limitations to this indemnification, or are franchisees liable for all franchisor losses regardless of whether they were caused by franchisee negligence?

The transfer fee is $10,000. What does this fee cover, and are there additional franchisor approval fees or conditions beyond the stated transfer fee?

The Ongoing Fees score is 60/100, at the lower end of the typical range. Beyond the 7.0% royalty, 1.0% ad fund, and $275 technology fee, are there any other recurring fees or assessments (for example, training fees, compliance fees, or insurance requirements)?

Given the small unit count (4 units), how does the franchisor provide ongoing support and training? Are support services scaled differently for small franchise systems compared to larger ones?

The agreement allows renewal for 2 consecutive 5-year terms (potential 20-year total). What happens if a franchisee wishes to renew beyond the second 5-year option, or is the agreement limited to a maximum 20-year lifespan per location?

With zero terminations and transfers historically, how many franchisees have chosen not to renew their agreements upon expiration, and what were their stated reasons for exiting?