Can you provide details about the 1 unit that closed in 2024 - what were the specific reasons for closure and how long had that franchisee been operating?
#1
Why does the royalty rate of 7.0% exceed the typical 5.0-6.0% range for senior care franchises, and is this rate negotiable for multi-unit operators?
#2
The ad fund rate is 0.0%, meaning no centralized advertising fund - how does the franchisor support franchisee marketing efforts, and what marketing materials or co-op opportunities are provided?
#3
The non-compete clause restricts franchisees for only 1 year within 10 miles after exit - can you explain the reasoning behind these relatively short restrictions compared to industry standards of 2 years and 20-46 miles?
#4
Given the 8.3% 1-year turnover rate exceeds the typical range, what do you believe are the primary challenges causing franchisees to exit, and what changes are being made to improve retention?
#5
Can you provide the specific financial performance data from Item 19, including median and average gross sales, number of reporting units, and the timeframe for this data?
#6
How many of the 12 current units are franchisee-owned versus company-operated, and what is the breakdown by location type and unit maturity?
#7
The franchise agreement requires binding arbitration with class action and jury trial waivers - have any disputes been resolved through arbitration in the past 3 years, and what were the outcomes?
#8
Personal guarantees are required from franchisees - are spousal guarantees also mandatory if the franchisee is married, and are there circumstances where personal guarantees can be limited or waived?
#9
What specific support and training are included in the $49,700 franchise fee, and what are the additional costs for ongoing training, certification, or continuing education?
#10
The $24,850 renewal fee equals 50% of the initial franchise fee - are there volume discounts or incentives for multi-unit renewals, and is this fee negotiable?
#11
How many franchisees have renewed their agreements at the end of their initial 10-year term, and what percentage choose not to renew versus terminate?
#12
With Item 19 available, can you share the average unit volume (AUV), average revenue, average expenses, and profit margins for units in their 1st, 2nd, 3rd, and 5th+ years of operation?
#13
The technology fee is $250 monthly - what systems does this cover, and has this fee increased since franchisees signed their agreements?
#14
How is the exclusive territory defined (geographic boundaries, population, client count), and what happens if demand exceeds one franchisee's capacity within the territory?
#15
Given the relatively small system size (12 units), what franchisor staff and resources exist for franchisee support, training, and complaint resolution?
#16
Are there any pending or recently settled disputes between the franchisor and franchisees that are not yet reflected in litigation records, or any known issues among existing franchisees?
#17
What is the franchisee's responsibility for hiring, training, and managing home care staff, and does the franchisor provide templates, compliance guidance, or certification programs?
#18
If a franchisee wants to sell or transfer their unit, what percentage of the $24,850 transfer fee goes to the franchisor versus legal/processing costs, and what is the franchisor's approval process?
#19
Can you provide references from at least 3 franchisees who have operated for 3+ years, including contact information they have personally authorized you to share?
#20