H-1 Auto Care, LLC

The Franchise Fee of $75,000 is 50% higher than the typical range for automotive franchises. What specific training, equipment, or support justifies this premium cost compared to competitors in the category?

The monthly Technology Fee of $1,000 is more than double the typical range for automotive franchises. What technology systems and services are included, and is this fee required or optional?

The Transfer Fee of $25,000 is nearly double the typical range. Is this fee negotiable, and does it apply if the transfer is to a family member or existing management?

The Ad Fund Rate of 4.0% is double the typical range for this category. How is this fund allocated between national, regional, and local advertising, and can franchisees request an accounting of fund usage?

The initial contract term of 20 years is significantly longer than the typical 10-15 years. What is the rationale for this extended term, and what happens if the franchisor is sold or changes operations during the contract period?

The agreement specifies 11 renewal conditions that must be met before the 10-year renewal option becomes available. Can you provide the complete list of these conditions, and what percentage of franchisees have been approved for renewal historically?

With 23 non-curable termination causes listed, significantly above the typical range, what are the most commonly cited reasons franchisees have lost their franchises?

Two litigation cases are currently pending. Can you disclose the nature of these cases, the parties involved, and the potential financial or operational impact if the franchisor loses?

The system has declined by 3 units over 3 years despite no franchisor-initiated terminations. What analysis has been done on why franchisees are voluntarily closing, and what changes have been made to address these closures?

The median gross sales of $1,300,259 reported in Item 19 represents units at what stage of maturity (startup, 1-2 years, 3+ years), and what was the sales range between the lowest and highest performing units?

Given the 2-year/25-mile non-compete clause, if a franchisee's location is in a rural area with limited population, how is this restriction interpreted and enforced in practice?

The renewal fee is 25% of the then-current franchise fee. If the Franchise Fee increases to $100,000 or more by year 20, what would the renewal fee be, and at what point would renewal become economically untenable?

The personal guarantee requirement extends to each shareholder, member, principal officer, partner and their spouses. Has the franchisor ever enforced personal guarantees against individual shareholders or spouses personally, separate from the business entity?

Of the 5 unit closures over the past 2 years, were any located in the same territory, and did the franchisor offer territorial adjustments or support before closure occurred?

What is the average time between a unit's opening and reaching the median sales figure of $1,300,259, and what percentage of franchisees fail to achieve this benchmark?

The agreement provides only a 30-day cure period for curable defaults. Are there specific defaults that are considered immediately non-curable without opportunity to remedy, and can you provide examples?

Does the franchisor have the unilateral right to modify fees, including the $1,000 monthly technology fee, during the 20-year initial term, and if so, what notice and consent requirements apply?

With 2 pending litigation cases and 2 total cases filed over 3 years, what topics have these cases involved, and are there any undisclosed regulatory complaints or claims filed with state franchise regulators?

The exclusive territory is defined as what geographic unit (radius, county, zip code, etc.), and can you provide a map showing the current territorial boundaries of existing franchisees?

If a franchisee fails to meet specific performance metrics or sales targets, does the franchisor have the right to reduce or modify the exclusive territory, and at what point would this occur?