Can you explain the very early 7-year initial contract term compared to the typical 10-year standard in your category, and how this affects long-term business planning?
#1
The transfer fee of $32,000 is more than double the typical range for landscaping franchises. What does this fee cover and is it negotiable?
#2
With zero litigation cases and zero turnover, can you describe your actual franchisee base? How many franchisees have exited voluntarily (non-renewal) versus remaining active?
#3
Your average gross sales of $1.5M exceed typical benchmarks for landscaping franchises. Can you provide Item 19 median sales figures and break down how many units generated this average?
#4
The franchise agreement requires minimum annual royalties escalating to $56,000 regardless of sales performance. How does this obligation interact with units generating below-average revenue?
#5
Can you detail the scope of 'designated suppliers' under the operational control clause and what percentage of total costs must be sourced from these suppliers?
#6
The termination clause lists 20 non-curable defaults but only 2 curable categories. What are examples of non-curable defaults that could lead to immediate termination without opportunity to cure?
#7
Personal guarantees required from all principals and spouses—can you clarify the exact scope and whether spouse guarantees are required if the spouse has no operational role?
#8
The dispute resolution clause mandates individual arbitration with class action waiver. Has this resulted in any disputes being unresolved or disputes escalating beyond arbitration?
#9
With only 1 franchised unit currently in operation, how long has the system been in existence and are you actively recruiting franchisees?
#10
The $100 late payment fee plus 1.5% monthly interest (18% annually) is charged on royalty payments. Has this structure been tested with franchisees experiencing cash flow challenges?
#11
Your support and training score of 88 exceeds typical ranges significantly. What specific training and ongoing support differentiates EcoGreen from competitors in this category?
#12
Can you provide detailed financials or Item 19 data showing the number of franchised units reporting sales and the distribution of performance across those units?
#13
The non-compete clause specifies 2 years and 50 miles post-termination. If a franchisee's territory extends beyond 50 miles or serves regional accounts, how is the non-compete enforced geographically?
#14
Given the minimal system size and turnover data, can you explain how the franchisor calculates typical unit economics and ROI projections provided to prospective franchisees?
#15
Are there any pending regulatory actions, complaints with state franchise regulators, or arbitration cases not reflected in the litigation data?
#16
The franchise fee is $40,000 with a $32,000 transfer fee and $6,000 renewal fee. What happens to these fees if a franchisee terminates for franchisor breach or non-renewal is not offered?
#17
Can you provide contact information for current and former franchisees willing to discuss their experiences, particularly regarding the transfer fee structure and operational support?
#18