Your unit growth rate of 16.4% annually significantly exceeds the typical range for cleaning and restoration franchises. What specific market conditions or operational improvements are driving this above-average growth?
#1
Financial Performance scores 40/100, below the typical range of 43-60. Can you provide Item 19 financial performance data or detailed profitability metrics for franchisees, broken down by unit age and geography?
#2
Eight units have closed since 2022 despite strong net growth. What are the primary reasons franchisees are exiting, and are there patterns by territory, franchisee demographics, or operational model?
#3
The franchise fee of $60,000 is at the higher end for your category. What is included in this fee, and what additional startup costs should a franchisee expect before opening?
#4
Royalty and advertising fund rates are not disclosed in available materials. What are the exact ongoing royalty percentage and advertising fund contributions, and are they fixed or variable?
#5
The dispute resolution clause mandates binding arbitration in Austin, Texas exclusively. What is the typical cost of arbitration disputes, and has the franchisor pursued arbitration against franchisees in the past?
#6
Non-compete restrictions apply to any 'CORE Member territory' within 25 miles for 2 years post-termination. How is a CORE Member territory defined, and could this restrict a departing franchisee's ability to operate in their original service area?
#7
The agreement lists 14 non-curable defaults allowing immediate termination. Can you provide specific examples of these non-curable defaults and clarify what 'immediate termination' means operationally?
#8
Personal guarantees are required from all owners and their spouses. Are these guarantees joint and several, and do they survive termination of the franchise agreement?
#9
Territory is protected but non-exclusive with no encroachment protection. Has the franchisor or other franchisees established competing units within existing franchisees' territories, and what recourse exists?
#10
With 5-year initial terms and 3 renewal options, how are renewal terms negotiated? Are royalty rates, territory boundaries, or other material terms subject to renegotiation at renewal?
#11
What is the average lifespan of a CORE Group Restoration franchise unit, and what percentage of franchisees reach their full potential term?
#12
The $300 annual technology fee is listed separately. What technology systems does this cover, are they mandatory, and have these fees increased historically?
#13
Zero litigation cases exist in the past 3 years. Has the franchisor pursued disputes through arbitration, and if so, how many arbitration cases have been filed or settled?
#14
Four units closed in both 2023 and 2024 while the system grew. Were these closures due to franchisee underperformance, market conditions, relocation, or other factors?
#15
What training and ongoing support does the franchise provide, and are there measurable performance metrics or benchmarks franchisees are expected to achieve?
#16
The indemnification clause covers claims arising from franchisee operations. Does this mean franchisees are responsible for defending the franchisor's legal costs, and are there insurance requirements to cover this?
#17
How many units have been transferred since the system's inception, and what is the typical resale value of a CORE Group Restoration franchise unit?
#18