What is the nature of the 1 pending litigation case, and what is the expected timeline for resolution?
#1
The franchisor has initiated 2 cases in the litigation data. What were the outcomes of these cases, and what specific issues were they related to?
#2
Your technology fee of $83/month is significantly lower than the category average of $290/month. Does this cover all required software, reporting, and technology support, or are there additional technology costs?
#3
Financial data shows average gross sales of $1,897,833 versus median of $1,165,844—a difference of $732,000. What factors account for this wide variance? What percentage of units fall below the median?
#4
The agreement requires minimum monthly gross revenues of $30,000 beginning in month 25. What percentage of current franchisees meet this threshold, and how many terminations have resulted from failure to meet this benchmark?
#5
Your total potential term is 10 years, which is half the typical duration in this category. Can franchisees negotiate for longer initial or renewal terms?
#6
The renewal fee is $10,000. Does this include fee reductions for franchisees with strong performance records, and what are the renewal approval conditions?
#7
Can you provide detailed case summaries of the 2 litigated disputes, including whether they involved franchisee terminations, non-renewal denials, or other matters?
#8
Are the 13 unit closures in 2024 attributable to specific market conditions, franchisor decisions, or franchisee voluntary exits? How does this compare to closures in comparable home care franchises?
#9
The post-term non-compete restricts former franchisees from competing within 25 miles for 2 years. How does the franchisor define and enforce 'competing' businesses in adjacent service areas?
#10
Binding arbitration is required in Hamilton County, Ohio. How many current franchisees operate outside Ohio, and what are the cost implications of mandatory arbitration there?
#11
Personal guarantees from all owners and spouses are required with joint and several liability. Can franchisees negotiate to limit personal guarantees or exclude spouses in certain scenarios?
#12
What support and training deficiencies exist, given the Support & Training score of 74 is below the category range of 79.5-90.5? What additional training or support costs might franchisees encounter?
#13
Can you provide the Item 19 statement showing the breakdown of units by profitability range and the percentage of units that underperform the average of $1,897,833?
#14
The Investment Costs score of 72 falls below the typical range. What are the actual total startup costs including working capital, and are there financing partnerships available?
#15
Have any franchisees initiated complaints with state regulators, and if so, what were the primary issues?
#16
The Ongoing Fees score of 60 is below the typical range. What is the full list of ongoing fees and charges beyond the 6% royalty and 2% ad fund?
#17
How many of the 28 net new units in the past year came from new franchisee recruitment versus existing franchisee multi-unit expansion?
#18
What is the historical approval rate for franchise renewal and what are the specific performance metrics that determine renewal approval or denial?
#19