Can you provide detailed information about the 2 units that ceased operations in 2022 and the 3 units closed in 2024—what were the primary reasons for closure and were there any franchisor support issues involved?
#1
Your 10.0% royalty rate is double the typical rate for hospitality franchises (5.0-5.5%). How does this rate compare to competitors in the RV rental space, and what additional support or services justify this premium rate?
#2
The franchise has grown from 0 units 3 years ago to 37 units today. Can you explain the timeline of this rapid expansion and clarify whether all growth units are currently operational?
#3
What specific renovations or changes are required at renewal, and what is the estimated cost to franchisees to comply with these renewal conditions?
#4
Can you provide a breakdown of the 37 current units by status—how many are actively operating, how many are newly acquired and not yet operational, and how many are in various stages of ramp-up?
#5
The transfer fee of $5,000 is significantly below industry standard ($12,500-$50,000). What does this fee cover, and are there additional costs associated with unit transfers that are not captured in this figure?
#6
You require binding arbitration at your headquarters location for all disputes. What would be the estimated cost and timeline for an average franchise dispute using this arbitration process?
#7
What does Item 19 financial performance disclosure specifically include? Can you provide the median or average gross sales figures and the number of units reporting data, broken down by unit age or location?
#8
The non-compete agreement includes 30 miles and 2 years post-termination. How is the 30-mile radius calculated, and would it restrict franchisees from operating similar RV rental businesses in adjacent or overlapping territories?
#9
Can you clarify whether personal guarantees from all owners are individual guarantees, joint guarantees, or joint-and-several guarantees, and under what circumstances spousal guarantees would be required?
#10
Have there been any disputes, complaints, or litigation involving franchisees in the past 3 years that did not result in formal legal action, and if so, how were these resolved?
#11
What percentage of franchisees have renewed their agreements, and what percentage have chosen not to renew? What are the primary reasons given by non-renewing franchisees?
#12
The initial term of 10 years is shorter than the typical 15-20 years in your category. Is this intentional to reduce franchisee long-term commitment, and what are the implications for both franchisor stability and franchisee investment protection?
#13
Can you provide a detailed list of all required renovations and operational standards that must be met during renewal to avoid non-renewal, and what the average cost of compliance has been for existing franchisees?
#14
How many units have failed to meet renewal requirements, and what percentage of franchisees have voluntarily declined renewal versus being required to make significant capital investments to renew?
#15
What support or training is provided to help new franchisees reach profitability, and what is the average time-to-profitability for your franchise units?
#16
Are there any geographic restrictions on territory assignments, and could a franchisee's exclusive territory be reduced or encroached upon if the franchisor decides to add new units nearby?
#17
The franchise requires binding arbitration with a class action waiver. Has this arbitration clause ever been enforced, and have any franchisees challenged its enforceability?
#18