The franchise fee of $65,000 is approximately 19% higher than the typical range for health and beauty franchises. What specific training, equipment, or support justifies this premium upfront investment?
#1
Technology fees are significantly lower than typical ($15/month vs. the $165-$428 range for comparable franchises). What technology systems and ongoing digital support are included in this fee, and are there additional technology costs not reflected in this figure?
#2
Transfer and renewal fees are both $32,500, which is 62-333% higher than typical for this category. Can you provide specific examples of what these fees cover and whether they are fully refundable or creditable under any circumstances?
#3
The advertising fund rate of 3.0% is above the typical 1.0-2.5% range. How is this fund specifically allocated, what campaigns does it support, and do franchisees have visibility into fund expenditures and ROI metrics?
#4
Reported gross sales average $2.6M, which is more than double the typical range ($455K-$1.1M). Are all 7 current units achieving sales near this level, and what is the range of sales performance among operating units?
#5
The system shows 40% unit growth in the past year with zero exits or terminations. What percentage of growth came from new unit sales versus acquisitions of existing units, and are all 7 units independently owned or are some multi-unit operators?
#6
No litigation cases are reported in the system's history. Has there been any litigation or disputes with franchisees that were resolved through settlement, arbitration, or mediation without formal court filing?
#7
The franchise agreement includes immediate termination rights for 13 non-curable defaults with no cure period. Can you provide specific examples of what constitutes a non-curable default under these provisions?
#8
Post-termination non-compete restrictions prohibit operating any behavioral therapy business within 2 years and 10 miles. Given that your current system is only 7 units, how would you enforce this restriction, and have you pursued any enforcement actions?
#9
The mandatory binding arbitration clause waives jury trial rights. What is your rationale for requiring arbitration-only dispute resolution, and what percentage of franchise disputes historically reach arbitration versus settlement?
#10
All franchise owners and their spouses must sign personal guarantees with joint and several liability. Are there any circumstances where this requirement can be waived or modified, particularly for corporate-owned franchises?
#11
Franchisees must purchase from franchisor-designated suppliers across 8 categories. What is the markup or profit margin structure on these supplier designations, and are there annual supplier audits or cost benchmarking?
#12
The renewal fee of $32,500 is required to bring the business into compliance with current franchisor standards. What specific upgrade requirements or capital expenditures do franchisees typically need to complete before renewal eligibility?
#13
With only 7 units in the system and a 10-year initial franchise term, how are you supporting franchisees during the early growth phase, and what is your target system size within 5 years?
#14
Can you provide contact information for current and former franchisees (including any who did not renew or transferred their units) so prospective franchisees can conduct independent reference checks?
#15
The franchise agreement gives the franchisor broad operational control over pricing, hours, and staffing minimums. What flexibility exists for franchisees to adapt operations to local market conditions?
#16
Item 19 financial performance data shows results for this franchise system. How many of the 7 current units are included in this financial data, and what is the time period covered?
#17
Given the specialized nature of autism care therapy, what licensing, certifications, or credentials are required of franchisees, and does the franchisor provide training or support in obtaining these qualifications?
#18
The support and training score of 79 is slightly below the typical range (81-96.25) for this category. What initial training duration is provided, and what ongoing training or educational resources are included in the royalty structure?
#19
What happens to a franchisee's protected territory if the franchise is not renewed—specifically, does the franchisor enter that market or restrict new unit development in the area?
#20