GoliathTech

Given the 21 closures in 2024 and the 21.6% annual turnover rate, what specific factors drove this acceleration in unit exits? Are there geographic, market, or operational factors contributing to the increase?

The non-renewal rate of 20.6% is substantially higher than the termination rate of 1.0%. Why are franchisees choosing not to renew rather than being terminated? What challenges are they citing?

The 5-year initial term is significantly shorter than the typical 10-year term for home services franchises. What is the rationale for this shorter term, and are there incentives for renewal beyond the 25% renewal fee cap?

With a 0.0% royalty rate, how does GoliathTech generate ongoing revenue beyond the ad fund and initial franchise fee? What are the total 5-year financial projections for franchisees?

The ad fund rate of 6.0% is three times the typical rate for this category. How is this ad fund utilized, and can franchisees see itemized spending breakdowns?

What specific support and training are provided, given that the Support & Training score of 75 falls below the typical range of 79.0-90.0 for home services franchises?

The franchise agreement lists 22 termination causes. Can the franchisor provide a breakdown of how many times each termination cause has been invoked in the past 3 years?

Given that the Financial Performance score is 40 out of 100 (below the typical 54-60 range), does GoliathTech provide Item 19 financial performance disclosures, and if so, what are the median and average gross sales for operating units?

The System Health score of 30 is significantly below the typical range of 50-70. What metrics are driving this low score, and what steps is management taking to improve system health?

Can franchisees request specific data on which units have closed and the reasons cited? Are there any geographic clusters or territories experiencing higher closure rates?

The contract requires mandatory binding arbitration in Quebec, Canada. For franchisees operating outside Canada, what are the practical implications of this dispute resolution process?

The operational control clause restricts purchases to the franchisor or approved suppliers in 8 categories. What are these categories, and how does the franchisor price these mandatory purchases relative to market rates?

Late payment interest is charged at 1.5% monthly (24% annual). Has this penalty been assessed frequently, and are there any payment flexibility provisions?

What are the escalating minimum purchase requirements for the franchisor's manufactured products? Provide specific dollar amounts or unit thresholds for each year of the franchise term.

All equity owners must provide personal guarantees. Can prospective franchisees negotiate limited personal guarantees or escrow arrangements to reduce personal liability exposure?

The 2-year/25-mile non-compete is quite broad. Has this been enforced against past franchisees, and has the franchisor pursued legal action against any franchisees operating in competing businesses post-termination?

Given the 22 termination causes listed in the agreement, which causes have resulted in actual terminations in the past 3 years, and what cure periods were offered?

The total potential term is only 5 years compared to the typical 15-20 years. Does this short maximum term create uncertainty for franchisees planning long-term investments?

Are there any seasonal patterns to the closures observed in 2023-2024? Were certain quarters or months more affected than others?

What support does GoliathTech provide to underperforming units before issuing termination notices? What intervention programs or coaching services are available?