The transfer fee of $5,000 is significantly lower than the typical range of $7,500-$15,000 for home services franchises. Is this fee structure intentional, and does it align with your actual processing and approval costs?
#1
Your Investment Cost score of 48 is substantially below the typical range of 74-75. What are the initial capital requirements beyond the $50,000 franchise fee, and are there any hidden or variable costs not disclosed in the FDD?
#2
With a 71.9% unit growth rate in the past year (23 new units), what is your current recruitment strategy and sales pipeline for year 2? What percentage of this growth is organic versus aggressive recruiting?
#3
Your Support & Training score of 71 falls below the typical 79-90 range for home services franchises. Can you detail the specific training programs, ongoing support frequency, and field support resources available to franchisees?
#4
Why does your franchise offer zero advertising fund contribution when the typical range is 1.0-2.0%? How do you fund national marketing, brand development, or local market support?
#5
Your initial term of 10 years and total potential term of 10 years are both significantly shorter than the typical 15-20 year range. What is the reasoning behind this shorter-than-typical term length, and do you offer renewal options?
#6
The contract specifies only 11 termination causes compared to the typical 14-21, and only 4 renewal conditions versus the typical 6-9. What termination and renewal conditions are included, and what does this reduced structure mean for franchise security?
#7
Item 19 financial data shows average gross sales of $467,000. What is the median gross sales figure, profit margins, and what percentage of units meet or exceed this average?
#8
You have a 5.5% transfer rate (2 of 36 units transferred in the past year). What is your transfer approval process, and can franchisees freely transfer to family members, business partners, or external buyers?
#9
Despite zero franchisor-initiated terminations, there were 2 closures in 2024 and 1 in 2025. Were these voluntary closures due to owner circumstances, market conditions, or operational challenges? What financial or operational issues led to these exits?
#10
Your binding arbitration clause requires Illinois, Maryland, and Washington State residents to waive class action rights. What disputes have been resolved through arbitration in the past 3 years, and what were the typical outcomes or settlements?
#11
The personal guarantee requirement applies to individual owners with joint and several liability. Can this obligation be released or limited after achieving certain performance milestones, and what happens if a franchisee's personal circumstances change?
#12
With System Health scoring 80 (above typical 50-70), what specific metrics or performance data support this high score? Are there unit closures or performance challenges not reflected in this assessment?
#13
Risk Factors score 77, above the typical 58-76 range. What are the primary identified risks in your franchise system, and how are you actively mitigating them?
#14
You mention encroachment protection is true. How is territory protected, what happens if a competing Dumpster Dudez location is placed nearby, and what is your dispute resolution process for territory conflicts?
#15
What is the renewal fee of $2,500, and are there any additional costs (equipment, training, marketing materials) associated with renewal at the end of the 10-year term?
#16
The 2-year/25-mile non-compete is below industry standards for some home services franchises. If a franchisee exits, can they immediately start a competing dumpster rental business outside 25 miles or after 2 years?
#17
You have zero pending litigation. Has there been any settlement or confidential arbitration activity in the past 3 years that would not appear in public court records?
#18
With rapid expansion from 19 to 55 units in 3 years, how are you ensuring quality control, brand consistency, and franchisee profitability as the system grows? What is your ideal target system size?
#19
Can you provide references from franchisees who opened in the past 12 months when growth was highest, and from those who transferred or exited, including contact information?
#20