Filta Environmental Kitchen Solutions

The franchisor has initiated 2 lawsuits in the past 3 years. What were the nature of these cases, what was the outcome, and are there any ongoing collection or enforcement efforts against current or former franchisees?

With 23 termination causes enumerated in the franchise agreement, what specific breaches have resulted in actual terminations, and how frequently does the franchisor exercise immediate termination rights versus allowing the 5-day cure period for payment defaults?

Average gross sales of $1.3M significantly exceed the typical range for this category. What is the range of sales performance across units, and what percentage of franchisees achieve the reported median of $903K or higher?

The system experienced 9 closures in 2022 but only 4 in 2024. What caused the closures in 2022, and what changes did the franchisor implement to improve retention?

With a 4.1% annual transfer rate, what is the franchisor's approval process for transfers, and are there restrictions on who can acquire a transferred unit?

The non-compete clause covers a 25-mile radius from 'any formerly assigned territory.' Does this mean a franchisee cannot operate within 25 miles of any territory they previously held, even if they sold it years ago?

The dispute resolution clause requires all litigation to be filed in the location of Filta's principal office and waives jury trial rights. What is the location of the principal office, and have franchisees challenged this venue requirement?

Franchisees must purchase spare parts and filters directly from Filta. What are the actual cost markups on these items, and does Filta provide pricing benchmarks or guarantees of competitive pricing?

The franchise agreement allows Filta to establish maximum and minimum prices for products and services. Has Filta exercised this control, and if so, what impact has it had on franchisee profitability?

Personal guarantees are required from all owners with 10%+ ownership. If a franchisee defaults, can Filta pursue personal assets of owner-guarantors beyond the business?

What specific support and training does Filta provide given the 85/100 support score, and is ongoing training included or subject to additional fees beyond the $200 monthly technology fee?

Item 19 financial performance data is provided. How many units reported this data, and what is the typical revenue range between the 25th and 75th percentile performers?

The franchise fee of $39,950 appears below the typical range for this category. Does this fee include equipment, initial inventory, or working capital, or are these costs additional?

With 364 current units and a 10-year initial term, how many franchisees are approaching the end of their initial 10-year term, and what has been the renewal rate for units eligible to renew?

The non-renewal rate is reported as 0%, meaning all eligible units chose to renew. Is this accurate, and if so, what percentage of franchisees were eligible to renew in the past 2 years?

Have there been any regulatory actions, government investigations, or FTC inquiries related to the franchisor, and are there any pending matters not reflected in the litigation count?

The franchisor requires purchases from approved suppliers in 8 categories. Who are the approved suppliers, and does Filta have financial interests in any of them beyond commission structures?

Given the 1 case where Filta was the defendant, what was the allegation, and have similar claims been raised by other franchisees or resolved informally?