Can you explain the exceptional 140% unit growth over the past year—was this primarily organic development or acquisition of existing tint shops?
#1
Only 1 unit closed in 2024 out of 24 total. What was the reason for this closure, and what support or intervention was provided to prevent it?
#2
Your transfer rate is 0.0% while typical automotive franchises experience 0.6-5.6% transfers annually. Does this indicate franchisees are not seeking to exit or transfer, or is data not being captured?
#3
Gross sales ($377,141 median) are significantly lower than category typical ($712,181 median). Can you provide context on whether this reflects a newer system with less-established locations or lower revenue potential?
#4
Your total potential contract term is 10 years, compared to the 15-30 year range typical in this category. What is the rationale for the shorter term, and what are franchisees' renewal expectations?
#5
The termination clause allows immediate termination for 14 categories of non-curable defaults. Can you provide examples of what constitutes these non-curable defaults and how many franchisees have faced this?
#6
All disputes must be resolved through binding arbitration at your headquarters location. How many disputes or grievances have arisen since the system began operations, and what was the nature of these disputes?
#7
Your dispute resolution clause includes a class action waiver. Has this waiver been tested or challenged, and how does it impact franchisees' ability to collectively address system issues?
#8
The personal guarantee requirement extends to spouses in some cases. Under what circumstances are spouse guarantees required, and can franchisees negotiate this out?
#9
With a 10-day cure period for payment defaults and 30-day for other defaults, how many franchisees have received cure notices, and what percentage successfully remedied defaults?
#10
Can you provide the names, locations, and reasons for the 7 historical closures/exits across your system's history to identify any patterns?
#11
Given the rapid growth from 7 units (3 years ago) to 24 units today, what quality assurance measures are in place to ensure consistent performance and franchisee satisfaction across the rapidly expanding system?
#12
Are the financial performance figures (Item 19) based on units that have been open for a full year, and do they exclude recently acquired or converted locations?
#13
What percentage of your current 24 units have been open for less than 1 year, and how does this affect the relevance of reported sales figures?
#14
The renewal fee is $10,000 and renewal terms are not specified. What are the renewal terms, and can renewal requirements (fees, territory adjustments, renegotiation) change between terms?
#15
Given zero litigation over 3 years, can you explain any disputes or complaints that were resolved outside formal litigation (mediation, settlement, arbitration)?
#16
With exclusive territory protection, how is territory defined (by zip code, radius, demographic)? Can you provide an example territory map for a typical franchise location?
#17
What is included in the $299 monthly technology fee, and are there any circumstances where this fee could increase or additional technology fees could be added?
#18
Your non-compete clause is 2 years and 5 miles. Is this enforced upon termination regardless of cause, and have any former franchisees challenged this restriction?
#19
Can you provide references from at least 10 current franchisees, including some opened in the past 2 years, to discuss their financial performance and franchisee support?
#20