Clear Lakes Dental

The technology fee of $2,200 monthly is more than 5 times the typical range for this category. What specific services and software are included in this fee, and are there any limits on additional technology charges?

Can you provide details on the 2 unit transfers that occurred in 2023? Were these initiated by franchisees or the franchisor, and what were the circumstances?

The franchise fee of $62,000 exceeds the typical range by approximately $7,400-$22,500. What additional value or support justifies this premium pricing compared to competitors?

Your 3-year CAGR of 58.74% significantly exceeds the typical range. Can you explain the growth strategy and whether you project this growth rate to continue?

The reported median gross sales of $4.8 million are substantially higher than typical dental franchises. Can you clarify whether these are gross revenues before expenses, and what the net profit margins typically are for units?

Given the 10-year initial term is shorter than the typical 15.5-20 year range, what happens if a franchisee invests in equipment or buildout that has a longer useful life than the contract term?

The renewal conditions require a general release signature. Does this release waive any claims the franchisee has against the franchisor, and can you provide sample renewal agreement language?

The post-term non-compete restricts "any business offering dental-related services" within 10 miles for 2 years. Does this include dental hygiene services, cosmetic dentistry, or only general dentistry?

You require purchases from designated suppliers for 8 categories including dental laboratory services. Can you provide a current list of approved suppliers and the typical cost impact versus non-approved alternatives?

There are 16 specific non-curable default events. Can you provide the complete list and clarify what happens if a franchisee is in breach of a non-curable event but remedies the issue within 30 days?

Personal guarantees are required from all owners and principal officers. Are these guarantees limited to the initial franchise period or do they continue through renewals?

As a very small franchise system with only 8 units, what support infrastructure exists for training, marketing, and operational assistance compared to larger dental franchise systems?

The $5,000 renewal fee appears standard, but what operational changes or new system requirements typically occur at renewal that might necessitate additional investments from franchisees?

Can you provide Item 19 financial performance data showing the number of units that achieved the reported median and average sales figures, and what percentage of units fell below $2 million in annual sales?

What is the breakdown of the reported sales figures—are these gross dental service revenues, or do they include ancillary services or product sales?

Given the rapid growth from 4 to 8 units in the past year, what are the demographics and characteristics of these new franchisees? Are they new to the dental industry or existing dental professionals?

The ongoing fees score of 60 is slightly below the typical range. Beyond royalty and technology fees, what other recurring costs should a franchisee expect (e.g., marketing fund contributions, insurance, licensing)?

The contract terms score of 55 is notably below typical. What specific contractual provisions are most restrictive, and would any of these be negotiable for experienced dental practice operators?

Can you clarify the encroachment protection policy? If you open a corporate-owned location or another franchise within 10 miles, what compensation or remedies are available to existing franchisees?

What is the current status of franchisees who began operations 3+ years ago? Are any of the original units from 2022-2023 still operating, and what have their sales trends been?