Border Magic

The system has declined from 57 units 3 years ago to 32 units currently. What does the franchisor attribute to this 44% contraction, and what specific initiatives are underway to stabilize or grow the system?

Eighteen units closed in 2022 compared to 8 in 2024. What operational or market changes drove the significant reduction in closures, and are conditions expected to remain stable?

Five litigation cases in 3 years exceed typical ranges for this category. Can you provide specific details on the nature of each case (franchisor-initiated vs. against franchisor), outcomes, and pending case status?

Three of the 5 litigation cases were initiated by the franchisor. What types of disputes prompted these cases, and what were the outcomes or settlements?

The franchise fee of $63,000 is approximately $3,100–$18,000 above typical home services franchises. How does the franchisor justify this premium, and what specific training, support, or competitive advantages does it provide?

Your technology fee of $65 monthly is substantially lower than the typical range of $156.50–$599.00. Does this reflect a minimal technology platform, and what specific technology services or software are included?

The franchisor has eliminated the advertising fund contribution entirely (0% vs. typical 1–2%). How are system-wide marketing and brand awareness funded, and are franchisees required to contribute to local marketing?

Item 19 (financial performance representations) is not provided. Will the franchisor provide detailed financial performance data for comparable units before signing, including average revenue, operating costs, and net income?

The non-compete clause restricts franchisees for 3 years within 25 miles of their former location or any other Border Magic location. How is 'any other Border Magic location' defined—does it apply only to existing locations at termination or any future locations?

What specific performance or renewal conditions are required to renew your franchise after the initial 10-year term? The disclosure mentions 9 conditions and a $5,500 renewal fee—can you detail each condition and likelihood of denial?

The franchisor may implement minimum gross revenue requirements with 30 days' notice. What are the current minimum revenue targets, and what happens if a franchisee fails to meet them in one or more years?

Late payments accrue interest at 1.5% monthly (18% annually). Are there any hardship provisions, forgiveness options, or negotiation policies if a franchisee experiences temporary cash flow issues?

Franchisees must purchase supplies and equipment from franchisor-designated suppliers only, with the franchisor serving as sole supplier for key equipment including the BM2. What does 'designated or approved' mean in practice, and what markup or profit does the franchisor realize on these mandatory purchases?

One pending litigation case is current. Can you disclose the nature of this case, involved party(ies), and expected timeline to resolution without breaching confidentiality agreements?

Of the 27 units that closed for 'ceased other' or unspecified reasons, what is the franchisor's assessment of why these franchisees exited? Were there common operational, financial, or systemic issues?

The termination rate is 2.6% annually, and 2 units were terminated in the past year. On what grounds were these terminations made, and did franchisees have opportunity to cure breaches?

The contract contains 17 non-curable defaults and only 3 curable defaults. Can you provide examples of non-curable defaults, and is there any appeal or dispute resolution process before termination?

All owners must provide personal guarantees for financial obligations and performance, and spouses must also guarantee financial obligations even without ownership interest. Are there any circumstances under which the franchisor will release the spouse guarantee?

What is the franchisor's 5-year unit growth projection, and what retention rate does the franchisor project for new franchisees signing today?

Can the franchisor provide references from at least 10 current franchisees and 5 who exited in the past 2 years willing to discuss their actual revenue, profitability, and reasons for exit?