Why has the system experienced zero net unit growth over the past 3 years, and what is the franchisor's strategy to increase franchise units going forward?
#1
The technology fee of $500 monthly is notably above the category average of $141-$440. What specific technology services and support are included in this fee?
#2
The transfer fee of $37,500 is 50% higher than the typical range for home care franchises. Can this fee be negotiated, and what does it cover?
#3
Given the System Health score of 50 (below typical range), what specific operational or support challenges contributed to this lower rating?
#4
The non-compete radius of 10 miles is below the typical 20-46 mile range. Does this narrow radius limit your exclusivity protection or create opportunities for encroachment?
#5
With zero unit transfers over 3 years, are there any franchisees looking to exit that the franchisor is aware of, and if so, why?
#6
Can you provide details on the 6 renewal conditions mentioned in the franchise agreement, particularly the facility modernization requirement?
#7
What support and training are included during the franchise term, and why does the Support & Training score of 78 fall slightly below the typical range?
#8
How does the franchisor help new franchisees establish clientele and revenue during the startup phase?
#9
What happens if a franchisee cannot meet the renewal conditions after 10 years, and is the $2,500 renewal fee non-refundable?
#10
Are there specific performance benchmarks franchisees must meet to avoid termination, and what constitutes 'unsafe practices' warranting 24-hour cure notice?
#11
Given the 5-day cure period for non-payment, what payment methods and schedules are available, and what are late payment penalties?
#12
The personal guarantee requiring spouse signatures seems broad—are there any limitations on what liabilities the spouse assumes?
#13
Can you explain the difference between the $37,500 transfer fee and renewal fee structures, and when each applies?
#14
With 11 units all showing financial activity, what is the failure or closure rate for units that have exited since the franchise began?
#15
Are there any pending or threatened lawsuits from franchisees, suppliers, or regulatory agencies that aren't yet reflected in official filings?
#16
What percentage of franchisees renew their agreements at the end of the initial 10-year term, and what are common reasons for non-renewal?
#17
How does the franchisor enforce the 2-year, 10-mile non-compete, and have there been instances of franchisees violating it?
#18
What insurance coverage is required, and does the franchisor indemnification clause require franchisees to carry franchisor liability coverage?
#19
Given the flat unit count, would the franchisor consider adjusting fees or terms to attract new franchisees, or is the current model intentionally selective?
#20