In 2022, 4 units closed out of 17 total units. Can the franchisor provide detailed information about why these 4 units closed and whether any were related to franchisor business decisions or support issues?
#1
The termination rate of 4.8% is significantly higher than the typical range of 0.0-1.53% for senior care franchises. How many franchisees have been terminated in the past 3 years, and what are the primary reasons for termination?
#2
Your royalty rate of 9.0% exceeds the typical 5.0-6.0% range. How does this rate compare to competing franchises in the senior home care space, and is the higher rate justified by additional services or support?
#3
The 75-mile non-compete radius is nearly double the typical range of 20-46.25 miles. What is the business rationale for this extended geographic restriction, and how does it affect franchisees' post-exit opportunities?
#4
Can you provide references from at least 5 franchisees who have successfully renewed their agreements under the stated conditions, including details about the refurbishment requirements and associated costs?
#5
What specifically are the 16 non-curable defaults that result in immediate termination without a cure period, and how frequently have franchisees been terminated for these violations?
#6
Given the binding arbitration requirement in Nassau County, New York, what are the typical costs and timelines for franchisees involved in disputes, and why was Nassau County chosen as the exclusive venue?
#7
The median gross sales of $1,443,200 exceeds the typical range. Can you provide the breakdown of how many units achieve this sales level, and what percentage of franchisees fall below the median?
#8
What support and training services justify the 9.0% royalty rate, and how has the nature or quality of these services changed over the past 3 years?
#9
The transfer fee of $14,850 represents approximately 30% of the franchise fee. Can you explain what is included in this transfer fee and whether it covers all franchisor costs associated with approving and onboarding a transferee?
#10
How many franchisees have renewed their agreements since the system was established, and what percentage of franchisees reach renewal without encountering termination or closure?
#11
Can you provide a detailed breakdown of the 4 units that ceased operations in 2022 (beyond the 4 closed and 1 transferred), including their status and circumstances?
#12
The 2-year non-compete clause requires personal guarantees from both principals and spouses. How are spousal guarantees enforced if a principal violates the non-compete, and are there examples of enforcement actions?
#13
What are the 8 specified conditions that franchisees must meet to qualify for renewal, and what percentage of franchisees fail to meet these conditions at renewal time?
#14
Given that the system had 20 units 1 year ago and 24 units currently, can you break down whether growth came from new unit sales, transferred units, or other sources?
#15
The franchise requires indemnification of the franchisor. Can you provide specific examples of claims against franchisees under this indemnification clause, and what were the costs?
#16
What is the average unit volume for franchisees in their first year, second year, and by year 5, and how does this compare to the median gross sales of $1,443,200?
#17
Are there any pending or threatened regulatory investigations involving the franchisor or its franchisees, particularly related to labor practices, licensing, or consumer complaints in the senior care industry?
#18
Can you provide detailed financial statements showing the franchisor's profitability and capital structure, including how franchise fees and royalties are allocated?
#19