The franchise fee of $35,000 is significantly lower than the typical range of $45,000-$59,900 for home services franchises. What specific justifies this lower entry cost, and are there additional fees or requirements not listed?
#1
Average gross sales of $219,895 are substantially below the typical range of $424,333-$1,214,622. Can you provide the number of units reporting this data and the range of sales performance across your franchise system?
#2
The contract specifies 26 termination causes compared to the typical 14-21 for this category. Can you provide a detailed list of these causes and clarify which are franchisor-discretionary versus objective performance-based triggers?
#3
The non-compete radius of 50 miles exceeds the typical range of 25-40 miles. How is this distance measured (from territory center, boundary, or franchisee's location), and what activities are specifically prohibited?
#4
The financial disclosure (Item 19) is available but shows zero current units, zero units 1 year ago, and zero units 3 years ago. Is this franchise newly launched, and if so, when did operations begin?
#5
With zero units in the system, can you explain the business model and timeline for franchise unit development? Are there any company-owned or pilot locations operating?
#6
The contract requires binding arbitration with class action and jury trial waivers. What specific disputes fall under arbitration, and what are the typical costs and timelines for resolution?
#7
Personal guarantees are required from all equity holders and spouses. If a spouse is not involved in the business, why is their personal guarantee necessary, and what specific obligations does it create?
#8
The contract mentions minimum monthly gross sales performance levels. What are these specific minimums, how are they calculated, and what are the consequences for failing to meet them?
#9
Late payment fees are 5% of amount due or $50 per week (whichever is greater) plus 18% annual interest. How quickly does this fee structure activate after payment is due?
#10
The renewal fee is 25% of the initial franchise fee ($8,750 in this case). Are there any conditions under which this renewal fee could increase, and what happens if you don't renew after 10 years?
#11
The 2-year post-term non-compete applies within a 50-mile radius. Can this restriction be modified or waived, and are there specific circumstances that would trigger enforcement?
#12
The contract mentions the franchisor's President must mediate disputes first before arbitration. What is the typical timeframe for this mediation, and does it require additional fees?
#13
Regarding indemnification, the franchisor is indemnified except for costs caused by franchisor negligence. How is franchisor negligence defined, and what documentation supports this distinction?
#14
The renewal conditions include 'substantial compliance' with the agreement. How is substantial compliance defined and measured, and are there objective standards or franchisor discretion involved?
#15
With zero litigation cases in 3 years but a new franchise system, can you provide references from any existing franchisees, company-owned locations, or pilot operations?
#16
The Ongoing Fees score of 60 is below the typical range of 62.0. Can you detail all ongoing fees including royalties, technology, ad fund, and any other charges beyond those listed?
#17
The Risk Factors score of 80 is above the typical range of 58.0-76.0. What specific risk factors contribute to this elevated score, and how does the franchisor mitigate them?
#18
Can you provide the FDD Item 20 information showing franchisor-owned unit performance and profitability to validate the Item 19 sales figures?
#19