The transfer fee of $25,000 is above typical for this category—what services and franchisor support are included in the transfer process to justify this cost?
#1
Why has the monthly technology fee of $500 increased significantly above the category average, and what specific technology services does this cover?
#2
Can you provide details on the 2 cases where the franchisor initiated litigation—what were the allegations and outcomes?
#3
Unit closures doubled from 6 in 2022 to 14 in 2024. What factors are driving this increase, and how is the franchisor addressing closure trends?
#4
The transfer rate of 8.7% is nearly double the category average—is this primarily due to franchisees selling to other operators or exiting the system entirely?
#5
Given the 5-year initial term and 5-year total potential term (half the category average), how does renewal actually work, and what are the renewal fee obligations beyond the stated $9,000?
#6
What specific goods and services must franchisees purchase exclusively from the franchisor or approved suppliers, and how are prices set or controlled?
#7
The non-compete restricts any business serving older adults within 45 miles for 2 years post-termination—how is this scope defined, and what constitutes prohibited 'Approved Services'?
#8
Your financial Item 19 shows units grossing $2.26-2.61 million—what is the typical net profit margin after all franchisor fees, technology costs, payroll, and operating expenses?
#9
How many of the 10 units that 'ceased for other reasons' in 2024 were due to franchisee retirement versus forced closure or franchisor non-renewal?
#10
What specific support and training are provided to franchisees to justify the above-average technology fee and improve retention given the increasing closure rate?
#11
Pending cases show zero, but 3 total cases exist—what were the resolutions of the 2 franchisor-initiated cases and the 1 case against the franchisor?
#12
The contract term scores notably low (48/100 vs. typical 60-65)—what specific contract provisions are most favorable to the franchisor and least favorable to franchisees?
#13
Personal guarantees are required from principals and spouses—does this obligation survive the franchise agreement, and are there any limitations on the franchisor's indemnification claims?
#14
Can you explain the discrepancy between net unit growth of only 0.97% and a 6-unit increase, given the high transfer and closure rates?
#15
What is the average cost of startup operations and working capital needed before a new franchise becomes cash flow positive?
#16
Are there any upcoming changes to the renewal conditions, technology fees, or non-compete terms planned, given the market's relatively new structure?
#17
How does the franchisor define and measure 'encroachment' within your exclusive territory, and what recourse do franchisees have if a competing Home Instead unit opens nearby?
#18