Budget Blinds

Can you provide details on the 2 franchisor-initiated litigation cases from the past 3 years, including the nature of disputes and outcomes or current status?

What specific factors drove the sharp increase in unit closures (31 in 2024 vs. 6–8 in 2022–2023), and how many of these were voluntary vs. franchisor-initiated?

How are the 23 units classified as 'ceased other' in 2024 defined, and what circumstances led to their exit versus the 31 closures?

The Franchise Fee of $19,950 is significantly lower than the category typical range of $45,000–$59,900. What is included in this lower fee, and are there additional initial costs not reflected in this figure?

Your royalty rate of 3.5% is below the category typical range of 6.0%–7.0%. Does this lower rate reflect a more recent pricing model, and are there any plans to adjust royalties?

Can you clarify the scope and justification for the $600/month Technology Fee, which is at the upper end of the typical range, and what specific systems and services it covers?

The Transfer Fee of $5,000 is well below typical industry rates of $7,500–$15,000. What services and administrative costs does this fee cover, and are there any additional costs for transfer approval?

What are the 5 renewal conditions referenced in your contract, and how do they compare to the 6–9 typical conditions found in other home service franchises?

Given the immediate termination clause for 14 non-curable defaults with no cure period, can you provide examples of these non-curable defaults and how frequently franchisees encounter termination under these terms?

How broadly is the 2-year, 25-mile non-compete clause interpreted and enforced, and have there been disputes with former franchisees regarding the scope of this restriction?

Can you explain the arbitration requirement and individual dispute resolution clause, and have franchisees raised concerns about the inability to pursue class action remedies?

What percentage of franchisees require a spouse signature as part of the personal guarantee, and are there cases where spousal guarantees have been enforced against non-signing spouses?

The System Health score of 71 exceeds the typical range of 50–70. What specific metrics or operational improvements drove this higher score?

The Investment Costs score of 84 is notably higher than the typical range of 74–75. Does this reflect lower initial investment requirements, and should prospective franchisees anticipate additional capital needs beyond the stated Franchise Fee?

Of the 6 cases initiated by the franchisor, how many involved non-payment of royalties, compliance disputes, or other contractual violations?

What support is provided to franchisees operating in competitive markets, given that transfer activity (6.4%) is slightly elevated and may indicate some franchisees are seeking to exit or restructure?

Can you provide a breakdown of the 1,366 current units by system age and performance tier to help assess where financial performance variations in Item 19 align with unit maturity?

What are the historical trends in franchise fee, royalty rate, and technology fee over the past 5 years, and should new franchisees expect rate increases during their term?

Are there any pending changes to the territory protection or encroachment policies, and how has the franchisor handled territory disputes in the past?

What percentage of new franchisees achieve the median Gross Sales of $556,955 within their first 3 years of operation, and what support or performance guarantees exist if units underperform?