Autism Center of Excellence

The franchise has grown 400% in one year (from 1 to 5 units). What is the franchisor's unit growth strategy and pipeline for the next 2-3 years? Are there specific geographic markets targeted for expansion?

Item 19 shows median gross sales of $1.45M and average gross sales of $2.05M, which significantly exceed typical ranges. What percentage of franchisees achieve or exceed the median reported sales figure? Which franchisees are in the top and bottom quartiles?

The franchise fee of $35,000 and royalty rate of 5.0% are both below typical ranges. Does the franchisor plan to adjust these rates as the system matures, and if so, under what conditions would existing franchisees be affected?

With only 5 units in operation, how long has the oldest franchisee been operating? Can you provide a reference list of all current franchisees, including their tenure and contact information?

The non-compete restriction is only 2 years and 5 miles. Given the exclusive territory protection, what prevents a former franchisee from opening a competing autism services center in the same territory after 2 years?

Why is the total potential contract term only 10 years (versus typical 15.5-20 years for this category)? What renewal options are available after the initial 10-year term?

The agreement contains 14 non-curable defaults that allow immediate termination. Can you provide a detailed list of these specific non-curable defaults and clarify what constitutes a breach?

Regarding the operational control clause requiring purchases from the franchisor or designated suppliers across 5 categories: What are these supplier categories, and what percentage markup does the franchisor or its affiliates add to these products?

The dispute resolution clause requires binding arbitration at the franchisor's headquarters location. What are the typical costs of arbitration under the American Arbitration Association, and who bears these costs?

All agreements require personal guarantees from owners and spouses. If a franchisee defaults, what is the franchisor's collection process and has it pursued personal guarantees against any former franchisees?

Zero litigation cases are reported. Can you provide the complete litigation history prior to the FDD reporting period, including any settlements or confidential agreements with franchisees?

What support and training are provided during the initial 10-year term, and what ongoing support (if any) is available if franchisees attempt renewal beyond the initial term?

The turnover rate is 0.0% to date. What is the franchisor's policy regarding underperforming units? At what sales or performance threshold would the franchisor consider terminating a franchise agreement?

Can you provide the financial performance data by individual franchisee (anonymized if necessary) to understand the distribution of sales results? What is the performance of the most recent franchisees versus the original location?

The renewal conditions count is 5, which is below typical. What are these specific renewal conditions, and what percentage of franchisees typically qualify for renewal?

Given the 14 termination causes in the agreement, how many are based on objective metrics (e.g., sales thresholds) versus subjective criteria (e.g., 'failure to maintain brand standards')?

The franchisee must sign a personal guarantee covering 'every undertaking, agreement, covenant, and liability of the franchisee.' Are there any dollar limits or caps on the personal guarantee exposure?

The franchisor can set minimum purchase requirements from designated suppliers. Have minimum purchase requirements changed since the franchise launched, and have any franchisees been terminated for failing to meet these minimums?

Regarding the $10,000 transfer fee, what is the franchisor's approval process for transfers? Under what circumstances would the franchisor reject a proposed transfer?

Since this is a very young system (0 units 3 years ago), what happens if the franchisor becomes insolvent or ceases operations? What protections exist for franchisees' investments and ongoing operations?