The system grew from 4 to 73 units in 3 years (1,116.7% growth). What were the specific challenges in onboarding and supporting such rapid expansion, and what resources were allocated to training and operations support?
#1
Support & Training score is 74, below the typical range of 79.0-90.0 for home services franchises. What specific training programs and ongoing support are provided to franchisees, and how does this compare to competitor systems?
#2
The Franchise Fee of $60,000 exceeds the typical range for the category. What is included in this fee, and are there additional upfront costs for equipment, inventory, or technology setup?
#3
Technology Fee is $600 monthly at the high end of typical range. What specific technology platforms and tools does this cover, and are there separate fees for additional software or integrations?
#4
Royalty Rate of 7.25% exceeds the typical 6.0-7.0% range. How is royalty calculated—on gross revenue or net revenue—and are there volume discounts or incentives for higher-performing franchisees?
#5
The contract specifies 27 termination causes, above the typical range of 14.0-21.0. Can you provide the full list of termination causes and explain which are non-curable versus curable?
#6
Total Potential Term is 30 years. What are the 9 conditions required to renew, and specifically what 'required remodeling' entails and at what cost to franchisees?
#7
Two units closed in 2024 out of 73. Can you identify the reasons for these closures—were they due to franchisee underperformance, market conditions, or other factors?
#8
The contract requires purchasing from approved suppliers for 5 categories (paint, flooring, marketing, attire, equipment) with minimum pricing controls. How are suppliers selected, and what pricing flexibility exists for franchisees?
#9
Minimum Monthly Royalty Fees are required regardless of actual performance. What is the minimum monthly royalty amount, and how does it scale with number of territories?
#10
Late payment penalties include 1.5% monthly interest. Are there any hardship provisions, payment plans, or grace periods available during slow business periods?
#11
Personal guarantees and spousal guarantees are required. Are there any limitations on the scope of personal liability, and can franchisees negotiate carve-outs for specific obligations?
#12
Given the expansion from 6 to 73 units in one year, how many of these new franchisees have units currently operational versus in development, and what is the actual revenue-generating unit count?
#13
Item 19 financial data is provided. What is the average unit volume (AUV) for established units (those operating 2+ years), and how many franchisees are unit-positive after Year 1?
#14
The Ongoing Fees score is 60, at or below the typical range of 62.0. What is the total ongoing percentage (royalty + ad fund + technology fee combined) expressed as a percentage of gross revenue?
#15
Non-Compete clause is 2 years / 25 miles. Can you explain the geographic restrictions in detail, including whether they apply post-sale/transfer and whether there are circumstances where they can be waived?
#16
Renewal Fee is $6,000. Are there additional renewal-related costs such as required retraining, certification, or technology upgrades?
#17
Territory assignment: What is the basis for territory definition (zip codes, radius, revenue potential), and what recourse exists if a franchisee believes their territory is undersized?
#18
Has the franchisor enforced any of the 27 termination causes, and if so, with what frequency and in what circumstances?
#19
What is the average time between signing a franchise agreement and achieving operational status (first customer revenue), and what franchisee attrition occurs during this ramp-up period?
#20