First Choice Business Brokers

The renewal structure shows -1 renewal options for 10 years, resulting in zero total potential term. Can you clarify the actual renewal structure, including how many renewal periods are available and under what terms?

Your ad fund rate of $250 is substantially higher than the typical range of 1.0-2.75% for business services franchises. How is this $250 calculated—is it a fixed monthly fee, percentage-based, or variable? What specific marketing activities and benefits does it fund?

The franchise agreement requires minimum gross revenue of $200,000 by year two. What percentage of current franchisees achieve this threshold, and what are the consequences if this milestone is not met?

Your system grew 34.6% in the past year, well above typical growth rates. What specific factors are driving this rapid expansion, and how does this impact territory saturation and franchisee performance in established markets?

With 7 unit closures in 2024, 4 terminations, and 2 other cessations, can you provide details on the reasons behind these exits and whether any relate to failure to meet the $200,000 revenue threshold?

The post-term non-compete restricts former franchisees from offering services within 20 miles of their location AND within 20 miles of any other FCBB franchisee. Given your current 109-unit footprint, how many locations would this practically restrict a departing franchisee from serving?

Your Support & Training score of 95 is above typical for this category. What specific training and ongoing support are included, and are there additional costs beyond the royalty and technology fees for training or consulting services?

The termination clause allows cure periods of 10 days for payment defaults and 30 days for other defaults. How frequently have these cure periods been exercised, and what percentage of defaulting franchisees successfully cure versus face termination?

Can you provide details on the 6 closures in 2022 and 7 in 2024—were these primarily voluntary closures, franchisor-initiated terminations, or a mix? What were the primary failure factors?

Personal guarantees from all principals and spouses cover unlimited financial obligations. Can you clarify what obligations beyond the franchise agreement fees are included in this personal guarantee scope?

The Contract Terms score of 55 falls below the typical range of 58.0-65.0. What specific contract provisions contributed to this lower score, and are there negotiable terms available for qualified franchisees?

Item 19 financial performance data is available—can you provide the median and average gross sales, along with the number and percentage of units reporting, broken down by unit age (1-2 years, 2-5 years, 5+ years)?

How does the $10,000 transfer fee compare to typical transfer arrangements in your system, and does this fee apply if a family member assumes ownership of an existing unit?

With termination rates of 3.7% and non-renewal rates of 0.9%, can you identify the primary reasons for non-renewals? Are franchisees choosing not to renew, or is the franchisor declining renewal?

The Investment Costs score of 79 is above typical range. Beyond the $40,000 franchise fee, what are typical total initial investment costs (including working capital, equipment, technology setup)?

Renewal fee information is not provided—is there a renewal fee separate from the franchise fee, and if so, what is the amount?

Given the 2-year, 20-mile post-term non-compete, how would a departing franchisee transition existing client relationships, and are there restrictions on client contact after departure?

Can you explain the structure of late fees (9% plus 1.5% monthly interest) and provide examples of how frequently late payments occur and are enforced in your system?

The franchise agreement mentions minimum revenue requirements and cure periods. Over the past 3 years, how many franchisees triggered default notice procedures, and how many ultimately cured versus faced termination?