Crestcom International

Given the royalty rate of 19.75% is significantly higher than the typical 6.0-10.0% range for business services franchises, what specific value, services, or support justify this above-market fee structure?

Can you provide a detailed breakdown of what is included in the monthly royalty payments and whether there are any circumstances where the royalty rate is reduced or adjusted?

The franchise fee of $75,000 is above the typical range. What is included in this fee, and are there any payment plan options available?

Item 19 shows median gross sales of $157,124, which is below category typical ranges. What factors contribute to this performance gap, and what percentage of franchisees achieve profitability?

Can you explain the 25 termination causes listed in the franchise agreement, which exceeds the typical range? How many of these are considered non-curable offenses allowing immediate termination?

The non-compete clause specifies 2 years but no mileage radius. How is the restricted geographic territory defined post-termination, and does it apply nationwide or only to your assigned territory?

With a total potential term of 28 years (7-year initial plus 3 renewals), what conditions must be met to qualify for renewal, and are renewal fees guaranteed to remain at $3,500?

What specific criteria or performance metrics trigger the 20 non-curable defaults that allow immediate termination without a cure period?

The dispute resolution clause requires binding arbitration in Denver, Colorado. Does the franchisor cover arbitration costs, and what are the average costs franchisees have incurred in past disputes?

Can you clarify why the territory is marked as protected but non-exclusive? What prevents the franchisor from opening additional units or approving competitors within my assigned area?

Of the 6-7 annual unit closures, how many are attributed to poor performance versus franchisor decisions, and what support does the franchisor provide to struggling units before termination?

The personal guarantee requirement has unlimited scope. Are there any limitations on the franchisor's right to pursue personal assets, and has this been enforced in past franchise failures?

What training, systems, and ongoing support are provided to justify the 19.75% royalty rate compared to similar business services franchises?

Have any franchisees successfully renegotiated royalty rates or terms after opening, and under what circumstances might the franchisor consider modifications?

Can you provide a list of the 8 curable defaults and their typical cure periods? What happens if a franchisee cures a default but commits the same violation again within 12 months?

For the 157 franchisees in operation, how many are performing above the median gross sales figure of $157,124, and what are the highest-performing units generating annually?

Does the indemnification clause require franchisees to maintain specific liability insurance minimums, and are there any claims the franchisor has filed against franchisees under this provision in the past 3 years?

The non-renewal rate is 1.2% annually. What is the primary reason franchisees choose not to renew, and does the franchisor offer any incentives or renegotiation opportunities before contracts expire?

Has the franchisor ever waived or modified the 2-year non-compete clause for any departing franchisees, and under what circumstances would such modifications be considered?