The franchise fee of $54,500 exceeds the typical range for business services franchises by approximately $4,500-$23,375. What specific value or services justify this premium pricing compared to competitors?
#1
Two units closed in 2022 classified as 'ceased other' rather than terminations. Can you provide details on why these units closed and what circumstances led to the closures?
#2
The termination rate is 0.0% over the period reviewed. Are there specific performance benchmarks or support structures that enable this low termination rate, and what circumstances would trigger a termination?
#3
What happens to my exclusive territory if I choose not to renew at the end of the 10-year initial term, and what are the renewal terms and conditions?
#4
The technology fee of $217 annually is separate from the 6% royalty rate. What specific technology systems and support does this fee cover, and is this fee subject to increases?
#5
Item 19 financial performance data is disclosed. Can you provide the most recent Item 19 showing the breakdown of units by revenue range, closure rates by revenue band, and how long units typically take to reach the average gross sales figure of $372,308?
#6
The immediate termination clause identifies 12 non-curable defaults including 'material misrepresentation' and 'criminal indictment.' How broadly do you interpret 'material misrepresentation,' and does criminal indictment apply to traffic violations or only felonies?
#7
All corporate officers and shareholders must execute unlimited personal guarantees. If I operate as an LLC, does every member need to execute a personal guarantee, or only managing members?
#8
The indemnification clause requires franchisees to indemnify the franchisor against all losses and damages. Are there any limitations on the franchisor's right to indemnification, and what does 'all losses and damages' specifically include?
#9
What is included in the transfer fee of $13,625, and are there any additional costs associated with transferring my franchise to a qualified buyer?
#10
How many of the 32 current units are owned by original franchisees versus subsequent owners, and what is the average tenure of current franchisees?
#11
The non-compete is 2 years / 50 miles. Does this apply if the franchise is not renewed or if I voluntarily exit, and are there circumstances where you would waive or modify this restriction?
#12
Can you provide a list of all litigation filed by or against the franchisor in the past 10 years, including cases that may not be captured in the 3-year window?
#13
The average gross sales of $372,308 is reported, but Item 19 shows 'units reporting' as N/A. What percentage of franchisees reported financial data, and how representative is this average?
#14
What specific training and ongoing support systems contribute to the Support & Training score of 92, which exceeds the typical range for this category?
#15
Are there any class action lawsuits, regulatory investigations, or complaints filed with state franchise regulators involving Criterium Engineers in the past 5 years?
#16
What is the typical timeline for a franchisee to recoup their initial investment and reach the average gross sales figure of $372,308?
#17
The renewal options are listed as 'N/A x 5 years.' Does this mean renewal is not available, renewal is at franchisor discretion, or the terms are to be negotiated at the end of the term?
#18
If I close my business voluntarily, what are my obligations regarding my customer contracts, and can I service existing customers after the non-compete period expires?
#19
Can you provide references from at least 10 franchisees who opened units in the past 3 years, including at least 3 who have exited the system, to discuss their actual financial performance and reasons for closure?
#20