The franchise fee of $5,000 is substantially lower than the typical range of $31,125-$50,000 for business services franchises. What is included in this unusually low initial fee, and are there additional upfront costs not captured in this figure?
#1
Transfer fees of $5,000 fall below the typical range of $5,250-$19,500. What restrictions or approval processes exist for franchise transfers, and how does the franchisor evaluate transfer requests?
#2
Your support and training score of 61 is significantly below the typical range of 74.0-91.0 for this category. What specific ongoing training and support resources are provided to franchisees after launch?
#3
Unit closures have nearly doubled from 23 in 2023 to 52 in 2024, with 49 classified as voluntary closures or cease-other. What are the primary reasons franchisees are choosing to exit, and what post-closure follow-up does the franchisor conduct?
#4
The non-compete clause is 1 year with no mileage restriction, below the typical 2-year standard. Can franchisees operate a competing business immediately after the 1-year period, even within their former territory?
#5
Renewal options are 3 years each, which is shorter than the typical 5.0-10.0 year renewal term. Why are renewal terms structured this way, and what is the franchisor's historical renewal approval rate?
#6
How many franchisees chose not to renew their franchises in the past 3 years versus those forced out through termination? The non-renewal rate currently shows as 0.0%, which seems inconsistent with the rising exit rate.
#7
Given zero litigation cases over 3 years, can you explain how disputes between franchisees and the franchisor have been resolved? Are there failed mediations or arbitrations not captured in formal litigation records?
#8
The dispute resolution clause requires mandatory arbitration in Michigan at the franchisor's discretion with waivers of class actions and jury trials. How many disputes have been arbitrated in the past 3 years, and what were the typical outcomes?
#9
Your 3-year unit growth CAGR of 11.7% exceeds the typical range of -1.7% to 8.6%. Is this growth being driven by new franchise sales, acquisitions of existing units, or conversions of independent businesses?
#10
Median gross sales of $367,975 suggest significant variation in unit performance. What is the distribution of revenue across units, and what percentage of franchisees fall below the median?
#11
Support and training is scored below typical range. Will I have access to dedicated ongoing support, business coaching, or peer networks? What is the structure and cost of continuing education?
#12
There is no exclusive territory protection despite the non-exclusive territory designation. What prevents the franchisor from establishing competing units or recruiting franchisees in my market area?
#13
The transfer fee of $5,000 is at the low end of typical ranges. Are there additional hidden costs or requirements associated with transfers, such as franchisor approval fees, training fees, or financial requirements for the transferee?
#14
Can you provide the specific reasons for the 3 franchise terminations that occurred in 2024? What violations or breaches led to these terminations?
#15
What happens if I decide to exit the franchise during my 5-year initial term? Are there early termination penalties, and am I obligated to continue operating or to sell the unit?
#16
The termination rate of 0.4% is very low, but exit rates are climbing. Does the franchisor have written policies on grounds for termination, and are there due process procedures before termination takes effect?
#17
How does the franchisor define 'ceased other' exits, which account for the majority of closures? Are these franchisees unable to find buyers, unable to sustain operations, or choosing strategic exits?
#18
Given the absence of a specified renewal fee, what should I expect to pay to renew the franchise at the end of my 5-year term?
#19
You indicate zero transfers on record. Why have no franchisees transferred their units in the past year, and what does this suggest about the resale value or attractiveness of franchise ownership?
#20