Driving Academy

The monthly technology fee of $525 is significantly higher than typical for education franchises ($122-$474). What specific technology services and platforms are included in this fee, and is it subject to annual increases?

Your royalty rate of 10.0% exceeds the typical range of 7.0-8.0% for this category. How does this rate compare to competitors, and are there volume discounts or reductions available as units scale revenue?

Average unit volumes ($4.3M) are approximately 3-4 times higher than typical for education franchises. Can you explain the business model differences that drive such high sales, and what percentage of this is from teaching services versus products?

The system grew from 1 unit to 6 units in 3 years with zero exits. How many of these 5 new units were opened by existing franchisees versus new franchisee recruits, and what is your franchisee recruitment strategy going forward?

Your non-compete restriction extends 30 miles, exceeding the typical range of 10-25 miles. What is the business justification for this broader geographic restriction, and how is it enforced post-termination?

Item 19 financial performance data is provided. How many of the 6 current units reported financial performance in your Item 19, and do the disclosed figures represent all operating units or a subset?

The franchise agreement identifies 16 non-curable defaults resulting in immediate termination. Can you provide specific examples of these non-curable defaults and explain the circumstances under which they would be invoked?

Renewal requires upgrades, remodeling, and refurbishing. What are the typical capital requirements for a renewal, and are there alternative renewal options for franchisees unable to meet these requirements?

Personal guarantees are required from all individuals or entities holding 10% or greater ownership. If a franchisee's spouse signs a personal guarantee, are they personally liable for franchise debt even if they have no operational involvement?

The system requires exclusive sourcing from approved suppliers in 15 categories with no alternative sourcing permitted. Can you provide the list of approved suppliers, their pricing compared to market rates, and the franchisor's financial relationships with these suppliers?

What specific support and training services justify the exceptional 100/100 Support & Training score, and how do these services scale as the franchisee network grows beyond the current 6 units?

With zero litigation cases in your history, how many franchisees have raised complaints or disputes (even if unlitigated), and what dispute resolution processes exist outside of formal litigation?

The transfer fee is $10,000 and renewal fee is $15,000. Are these fees refundable if the franchisor fails to perform renewal obligations, or are they non-refundable regardless of outcome?

Can you disclose the names, locations, and contact information for all current franchisees so I can conduct independent reference calls and verify the financial performance claims?

What is the current recruiting status for additional franchisees, and are there territorial or numerical limits on how many franchises will be awarded in my area?

The non-compete begins immediately upon termination or non-renewal for 2 years. If a franchisee is terminated for non-curable default, do they have any right to appeal or cure before the non-compete becomes enforceable?

How are the 5-year renewal term financial projections structured, and what is the historical rate at which franchisees successfully renew versus those who exit at term end?

What changes to the franchise system, technology platform, or operational requirements have been implemented in the past 3 years, and how have these affected franchisee profitability?

Given the rapid growth from 2 to 6 units in one year, what is the maximum size you plan for this franchise system, and will expansion be geographically controlled to protect existing franchisees?

The operational control section grants the franchisor broad authority over suppliers and minimum standards. Can you provide specific examples of standards set for each of the 15 supply categories and explain how often these standards are modified?