Green Motion Car and Van Rental

The system contracted from 9 units to 6 units in 2024 with 4 voluntary closures. What specific operational, financial, or market conditions prompted these 4 franchisees to close simultaneously, and has the franchisor implemented changes to address the underlying causes?

Your franchise fee of $410,000 is 8.3 times higher than typical automotive franchises ($25,000-$49,500). How is this premium justified in terms of included assets, training, or technology compared to competitors in the vehicle rental sector?

The transfer fee of $37,500 is nearly 3 times the typical range. What specific services and franchisor involvement justify this fee, and are there circumstances where the fee could be negotiated or reduced?

Your franchise agreement specifies 23 termination causes with only 3 curable defaults. Can you provide a detailed list of these 23 non-curable defaults that result in automatic termination without notice or cure period?

Given the 44.4% closure rate in 2024, what financial performance or unit economics can current and prospective franchisees expect? Are Item 19 financial disclosures available to substantiate revenue and profitability claims?

The system grew from 4 units (2022) to 9 units (2023) then contracted to 6 units (2024). What is your current growth strategy, and do you have pipeline commitments or expansion plans to stabilize or grow the system?

Your non-compete clause restricts former franchisees from operating any vehicle rental business within 10 miles of their former territory OR any other Green Motion location for 2 years. For a franchisee with a 10-mile territory, could this effectively prevent them from operating in your entire regional market?

The single litigation case in the past 3 years involved the franchisor as defendant. What was the nature of this case, what was the outcome, and has it resulted in any changes to franchisor operations or franchise agreement terms?

Your franchise agreement requires personal guarantees from both the franchisee and spouse, plus indemnification of the franchisor from all claims and damages. What specific liabilities would a franchisee be responsible for under this indemnification clause?

Late payment terms include a 5% late fee plus 18% annual interest on overdue amounts. Can you clarify whether the 18% is compounded, and whether there are any grace periods before penalties apply?

The agreement mandates binding arbitration with class action waivers on an individual basis. If a group of franchisees experience the same issue (such as the 2024 closures), would they be unable to pursue collective legal action?

Renewal requires full compliance and good standing with the agreement and achievement of minimum performance standards. What are the specific minimum performance standards franchisees must meet, and how are these measured?

With only 6 operational units currently, how do you support technology infrastructure, national marketing campaigns, and franchisee support services? Are there potential service limitations or cost increases as the system remains small?

The data shows 0% transfer rate despite a high closure rate. Are there contractual restrictions that prevent franchisees from transferring their units to prospective buyers?

Your territory is protected but not exclusive. What encroachment protections are in place, and has the franchisor ever opened company-owned locations or allowed new franchises to operate within 5, 10, or 15 miles of existing franchisees?

Given the agreement contains substantial franchisor-favorable terms (mandatory arbitration, personal guarantees, 23 non-curable termination causes, high transfer fees), are any of these terms negotiable for qualified franchisees?

The technology fee of $500 monthly is at the high end of the range. What specific technology platforms, software, or support services does this fee cover, and how is it differentiated from the 6% royalty?

Can you provide references from the 6 current franchisees and the 4 franchisees who closed in 2024 so prospective franchisees can understand their experience and the reasons for closure?