HomeTeam Inspection Service

The financial performance score of 52/100 falls below the typical range. What factors contributed to the lower-than-average gross sales reported in Item 19, and has franchisor management taken steps to address this?

Average gross sales of $310,321 and median sales of $267,105 are both significantly below typical ranges for home services franchises. Can you provide a breakdown of what percentage of franchisees achieve the median sales level and what the bottom quartile generates?

The system experienced negative growth (-0.33% CAGR) over 3 years, declining from 202 units to 200. What is the franchisor's growth strategy, and what realistic unit growth projections are being made for the next 3-5 years?

Terminations averaged 8.7 units per year over the past 3 years, with termination rate at 3.5%. What are the most common reasons franchisees are terminated, and can you provide specific examples from the single litigation case filed?

The 2023 data shows 15 unit transfers compared to 3 in 2022 and 3 in 2024. Why did transfers spike significantly in 2023, and does this indicate franchisees were exiting or restructuring their ownership?

Your advertising fund rate of 3.0% exceeds the typical range of 1.0-2.0%. How is this 3% fund allocated, and can franchisees see a detailed accounting of how their contributions are spent?

The technology fee of $100/month is below typical range ($156.5-$599.0). What specific technology and tools are included in this fee, and is the franchisor planning to increase this fee in the near future?

The non-compete clause restricts former franchisees for 2 years within 25 miles. Has the franchisor enforced this clause in any of the terminated or transferred units, and are there documented cases of violations?

The single litigation case in the past 3 years involved the franchisor as defendant. What was the nature of this case, has it been resolved, and what was the outcome?

Item 19 financial performance data shows lower sales than typical. Are the reported sales figures from a representative sample of all franchisees, or are they skewed toward higher-performing units?

Franchisees must maintain minimum sales performance levels as specified by the franchisor. What are these minimum thresholds, how are they calculated, and what penalties apply if franchisees fall below them?

Late payments incur an $20 fixed fee plus 18% annual interest. How often do franchisees fall behind on royalty payments, and have any franchisees been terminated primarily due to non-payment?

The investment score of 81/100 exceeds the typical range of 74.0-75.0. Can you clarify what factors justify the above-average investment score despite the below-average sales performance?

The franchise agreement requires personal guarantees from all principals and their spouses. Can you explain the circumstances under which franchisees have been held personally liable, and are there alternatives to spouse guarantees?

Transfer fee is $10,000 and renewal fee is $2,500. What are the conditions under which transfers are approved or denied, and how many transfer requests have been denied in the past 3 years?

With a 10-year initial term and 1 renewal option for 10 years, what is the franchisor's policy on renewal? Are renewals automatically granted or subject to renegotiation of terms?

Can you provide the names and contact information for 5-10 current and former franchisees across different performance levels so I can conduct independent reference calls?