CRS Franchising, LLC d/b/a CRS Packout

Given the system expanded from 2 units (2022) to 37 units (2024), how many of the current 37 units were acquired through new franchise sales versus acquisition of existing locations or internal expansion?

What explains the zero percent turnover rate over 3 years? Have any franchisees exited the system, and if so, through what mechanism (closure, sale, non-renewal)?

The average gross sales of $406,111 are notably below the cleaning and restoration category typical range of $464,508-$1,660,695. What factors contribute to the lower sales performance, and do you project sales will increase as the system matures?

Can you provide a breakdown of the 37 current units by vintage (e.g., how many opened in 2024, 2023, 2022)? Are the newer units generating comparable sales to earlier units?

What percentage of the 31 units added in the past year are still operating and reporting financial data?

With only 11 termination causes listed in the franchise agreement, which is below the typical 14-22 for this category, what specific performance metrics or breaches would trigger franchisor termination rights?

The franchise fee is $55,000 with a $400 monthly technology fee. Are there any additional mandatory costs, such as required initial inventory purchases, training expenses, or insurance that should be factored into the total initial investment?

Given the rapid system growth, how is the franchisor ensuring consistent brand standards and service quality across the expanding unit base? What support and training resources are in place?

The transfer fee is $10,000. Does this fee apply if a franchisee wishes to sell their location, and are there any franchisor approval requirements or right of first refusal clauses?

What is the franchisee's obligation regarding mandatory supplier purchases across the 3 designated categories (inventory boxes, point-of-sale software, and others)? What are typical monthly supply costs, and can franchisees negotiate volume discounts?

The non-compete clause restricts activity for 2 years within 50 miles of the former business or any other franchise location. How is 'any other franchise location' defined—does it include future locations opened after the franchisee's exit?

With zero litigation cases reported, have there been any disputes between the franchisor and franchisees that were resolved through the mandatory mediation process outlined in the franchise agreement?

The financial performance data shows significant variance: bottom quartile sales of $96,160 versus top quartile of $763,109. What factors differentiate high-performing units from lower-performing ones, and can you provide case studies?

Are the financial figures provided in Item 19 based on actual franchisee reporting, or are they projections? How many franchisees contributed data for the median and average calculations?

The territory is exclusive with encroachment protection. Can you clarify the specific geographic boundaries of territories granted to new franchisees and how encroachment disputes are resolved?

What renewal fee, if any, applies to the 2 optional 5-year renewal periods after the initial 10-year term?

Given the system's rapid expansion, what is the franchisor's policy on multi-unit development, and what discounts or incentives are offered to franchisees who commit to opening multiple locations?

How does the franchisor handle conflicts of interest between competing franchisees in adjacent territories, particularly as the system continues to expand rapidly?

What financial performance benchmarks or support triggers does the franchisor have in place? If a franchisee's sales fall below a certain threshold, what intervention or support mechanisms are available?

Can you provide the historical performance data for franchisees who opened in 2022 and 2023? What percentage of those units achieved profitability within their first, second, or third years of operation?