Crestcom International Area Representative

The franchise fee of $325,000 is significantly higher than the typical range for business service franchises ($31,125-$50,000). What specific services, training, and support justify this premium initial investment?

Can you provide details on what the 23 termination causes in the franchise agreement cover, and how many have actually resulted in terminations in the past 3 years?

The 28-year total potential term (7 years initial + 3 renewals of 7 years) is substantially longer than typical. Are there any conditions under which a renewal option might not be available to the franchisee?

What are the specific 'Minimum Quarterly Production Obligations' for referring third parties to become Active Franchisees, and what are the consequences of not meeting these quotas?

The non-compete clause is 2.5 years within the territory and within any other CRESTCOM franchise location territory. How are 'other CRESTCOM franchise location territories' defined and determined?

Can you clarify what modifications to conform to franchise specifications may be required during renewal, and who bears the cost of these modifications?

What is the typical timeline and process for obtaining approval of transfers, and are there specific buyer qualifications beyond the standard franchise fee payment?

The agreement requires personal guarantees from officers, directors, shareholders, partners or members, including spouse liability. Are spouses jointly liable even if they have no ownership interest in the business?

All disputes require binding arbitration in Denver, Colorado on an individual basis with waived class action and jury trial rights. Has the franchisor ever pursued arbitration against franchisees, and what were the outcomes?

Item 19 shows average gross sales of $1,111,937 and median of $747,041. Can you break down how many franchisees fall within the median range versus the higher average range?

What percentage of the franchisees reporting financial data in Item 19 are Area Representatives (as opposed to other franchise types within the system)?

The 3% late fee plus 18% annual interest on past due production obligations appears to compound monthly. Is this applied to all franchisees, and can you provide examples of how this has affected franchisees?

Transfer rate is 3.7% annually, which suggests active secondary market activity. What is the typical time to resale, and at what percentage of initial investment do units typically transfer?

Are there any restrictions on who can acquire a transferred franchise, such as non-compete with existing franchisees or territory limitations?

Of the 27 current units, how many are generating sales above the median of $747,041, and how many are below that threshold?

The system reports zero 1-year exit rate and zero termination rate. Has the franchisor terminated any franchisees in the past 5 years, and if so, under which termination causes?

What support and training are provided during the initial period and throughout the 7-year term, and how do these services justify the higher investment compared to other business service franchises?

The renewal fee is $16,500. Does this fee apply to all three renewal periods, and are there any additional fees or capital expenditures required at renewal?

Can you provide references from 5-10 franchisees who have been with the system for 3+ years to discuss their experience with production obligations, support quality, and profitability?

What happens to territory exclusivity if a franchisee fails to meet Minimum Quarterly Production Obligations but remains current on royalty payments?