Culligan International Company

Given the franchise fee of $39,583 is 12-31% below the typical range for home services franchises, what is included in this lower initial investment and are there additional startup costs not reflected in the franchise fee?

The royalty rate of 2.0% is significantly below the typical 6.0-7.0% range for home services franchises—how does this low royalty rate impact franchisor support, marketing contributions, and system reinvestment?

Why has the transfer fee been reduced to $1,583, which is 79-89% below the typical range of $7,500-$15,000, and does this affect the franchisor's ability to approve or deny transfers?

Can you explain the significant increase in unit closures from 35 in 2023 to 17 in 2024—what factors drove these closures, and are there indicators that closures are stabilizing or may increase again?

The system shows a 3-year compound annual growth rate of -0.3%, with the unit count declining from 558 to 553—what is the franchisor's strategic plan to reverse this decline or return to growth?

With an initial term of 21 years, which exceeds the typical 10-year term for this category, what are the specific renewal conditions, renewal fees if any, and the franchisor's policy regarding non-renewal?

The franchise agreement specifies only 3 renewal conditions compared to the typical 6-9 for this category—what are these conditions, and are there any vague or franchisor-discretionary criteria that could result in non-renewal?

Item 19 (financial performance representations) is not provided—can the franchisor provide gross sales data, average unit volumes (AUV), profitability information, or any financial performance representations for comparable units?

With a 2-year non-compete clause but no geographic radius specified, what is the geographic scope of the non-compete, and does it apply after voluntary exit, termination, or non-renewal?

Can you provide details on the 4 'Ceased Other' exits in 2023 and the 3 'Ceased Other' exits in 2024—what circumstances led to these closures that are separate from terminations, closures, or transfers?

Given zero litigation cases in the 3-year period, can you confirm whether this represents minimal franchisor-franchisee disputes, and if so, what conflict resolution mechanisms exist in the franchise agreement?

What support, training, and ongoing assistance does the franchisor provide given the low 2.0% royalty rate, and how is the franchisor funding system-wide marketing, technology, and operational support?

The territory is exclusive with encroachment protection—can you provide specific examples of how the franchisor has defended exclusive territories and what happens if encroachment occurs?

Are there any pending or anticipated changes to the fee structure, including royalty rates, ad fund contributions, or technology fees, that prospective franchisees should be aware of?

Of the 35 closures in 2023, can you break down how many were due to owner decisions, market conditions, economic factors, franchisor termination, or other causes?

What percentage of current franchisees have renewed their agreements, and what has been the franchisor's non-renewal rate historically beyond the 0.4% figure from the most recent year?