HOMEstretch

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

Late payment penalties include 1.5% monthly interest. Are there any hardship provisions, payment plans, or grace periods available during slow business periods?

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?

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?

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?

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?

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?

Renewal Fee is $6,000. Are there additional renewal-related costs such as required retraining, certification, or technology upgrades?

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?

Has the franchisor enforced any of the 27 termination causes, and if so, with what frequency and in what circumstances?

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?