The system grew from 2 units to 17 units in one year (750% growth). Can you explain what drove this rapid expansion and whether all these units are currently operating profitably?
#1
Median gross sales of $26,296 are substantially below the typical range for home services franchises. What is the business model explanation for these low reported sales figures?
#2
Your Financial Performance (Item 19) shows significant variation between units—top quartile sales of $282,500 versus bottom quartile of $990. What specific factors account for this extreme range?
#3
With zero terminations and zero closures reported, how are underperforming franchisees addressed? What are the specific performance benchmarks that trigger franchisor intervention?
#4
The non-compete radius of 100 miles is double the typical range. How is this enforced, and has the franchisor pursued any legal action against former franchisees who violated this restriction?
#5
You maintain 'protected but not exclusive' territory. Can you clarify what encroachment protections exist and provide specific examples of how you've protected franchisees' territory integrity?
#6
The Termination Causes section lists 12 grounds, below the typical 14-21. What specific termination grounds are omitted compared to standard franchise agreements, and why?
#7
What is your rationale for the minimum royalty requirement? How is this calculated, and what percentage of current franchisees pay the minimum versus royalties based on actual sales?
#8
Can you provide the contact information and performance details for the 15 franchisees added in the past year so I can independently verify their sales claims and satisfaction levels?
#9
Your Support & Training score of 100 is above the typical range. What specific training and ongoing support programs are included, and are there any optional paid training services?
#10
The Investment Costs score of 53 is below the typical range. Beyond the $59,500 franchise fee, what is the total investment required to launch a unit, including working capital?
#11
Your Financial Performance score is 41 (below the typical 54-60 range). Does this reflect intentional selection of metrics, or do actual franchisee results differ significantly from what's disclosed in Item 19?
#12
The dispute resolution clause requires binding arbitration in your county. How many franchisees have filed arbitration claims in the past 3 years, and what were the outcomes?
#13
Item 19 reports median sales of $26,296. Over what time period is this measured (monthly, quarterly, annual), and at what stage of operation do units achieve their peak performance?
#14
The $50 daily late payment fee plus 1.5% monthly interest represents 18% annual interest. Have you actually imposed these penalties, and if so, how frequently and against how many franchisees?
#15
You require sourcing from franchisor or designated suppliers for 'nearly all inventory and supplies.' What percentage of cost of goods are subject to this requirement, and do you earn margins on these supplier relationships?
#16
The Risk Factors score of 80 is above the typical 58-76 range. What specific risk factors elevated this score, and how do you mitigate these risks for franchisees?
#17
Are there any pending investigations by state franchise regulators, and have you received any cease-and-desist orders related to franchise sales or operations?
#18
Given the 104% 3-year CAGR, what is your unit growth projection for the next 2-3 years, and how will you manage franchisee support and territory integrity at scale?
#19
Can you provide the average unit economics including all fees, typical operating costs, and break-even timeline based on actual franchisee data from your current system?
#20