Door Renew

The system has experienced 13 unit closures in 2024 alone—can the franchisor explain the primary reasons for this sharp increase and what operational or market changes contributed to this acceleration?

With 7 pending litigation cases and 12 total cases over 3 years, what is the nature of the 3 cases initiated by the franchisor as plaintiff, and what outcomes are expected from the 7 pending cases?

The 40.0% 1-year closure rate far exceeds typical home services franchises (0.55-12.5%)—what percentage of closures are attributed to franchisee choice versus franchisor terminations, and does the franchisor have data on profitability of operating units?

Item 19 is included in the disclosure—can the franchisor provide the actual median and average gross sales figures for operating units, along with the number of units included in the analysis?

The contract requires minimum performance standards of $200,000 in years 3-5 and $300,000 in years 6-10—what percentage of current and former units met these thresholds, and how many terminations occurred due to failure to meet minimum revenue requirements?

With a 10-year initial term and only 10 years total potential term (one 10-year renewal), why does this franchise offer a significantly shorter total contract term than typical for home services franchises (15-20 years), and what is the renewal approval process?

The franchisor has 23 termination causes specified in the contract, above the typical range of 14-21—can the franchisor provide a breakdown of which causes have been most frequently cited in terminations of units that have closed?

Six units were transferred in the past 3 years at a 15.0% transfer rate—who were the transferees (existing franchisees, franchisor, third parties), and what criteria does the franchisor use to approve transfers?

The dispute resolution clause mandates binding arbitration in Wilmington, Delaware with waiver of jury trials—has the franchisor been involved in arbitration, and what were the outcomes of cases resolved through this process versus litigation?

Personal guarantees are required from all principals unconditionally guaranteeing payment and performance—does this guarantee survive transfer of the franchise, and what happens to the personal guarantee if the unit is terminated?

Late payments incur interest at 1.5% per week (18% per annum)—in the past 3 years, how many franchisees have incurred late payment penalties, and what was the average amount of late fees charged?

The non-compete clause is 2 years and 25 miles—has the franchisor enforced this clause against terminated franchisees, and are there any cases currently pending related to non-compete violations?

With 6 of 12 litigation cases showing the franchisor as defendant, what are the general categories of claims against the franchisor (breach of contract, misrepresentation, trademark infringement, etc.)?

The System Health score is 10/100, significantly below the typical 50-70 range—what specific operational or franchise support metrics contributed to this very low score?

The franchise requires $10,000 renewal fees and $10,000 transfer fees—are these fees in addition to other costs associated with renewal or transfer, and what services or support do they cover?

The Contract Terms score (55/100) falls below typical range (60-65)—which specific contract provisions or terms scored lowest in the assessment?

Net unit growth was negative 10.0% in the past year despite the franchise still charging royalties—does the franchisor have a plan to stabilize or grow the system, and are any new franchises currently in development?

Of the 2 units that exited due to 'ceased other' reasons in 2022 and 3 in 2023, and 6 in 2024—what do these closures represent (bankruptcy, owner retirement, business failure, etc.)?

The Risk Factors score is 0/100 (typical range 58-76)—what does a score of 0 indicate about identified risk factors, and has the franchisor taken steps to address these factors?

Support & Training score is 94/100 (above typical 79-90)—what specific support and training services does the franchisor provide, and are these services equally available to all franchisees regardless of location or tenure?