Homewatch CareGivers

The franchisor has initiated 2 legal cases in recent years. What were the specific nature and outcomes of these cases, and do they relate to franchise relationship disputes or business operations?

Your termination rate of 4.9% is significantly above the typical range of 0.0-1.53% for senior care franchises. What are the primary reasons franchisees are being terminated, and can you provide examples of violations that trigger immediate termination versus those allowing cure periods?

The contract lists 25 termination causes. How many of these are considered non-curable defaults allowing immediate termination without opportunity to remedy, and which specific operational or financial breaches fall into this category?

Unit transfers increased to 22 in 2024 compared to 6 in 2022. Are these primarily franchisee-to-franchisee transfers or transfers back to the franchisor, and what approval process and fees are involved?

Your 3-year compound annual growth rate is 0.3%, substantially below the category average. Given the current 224-unit system, what is your growth strategy and projected unit expansion over the next 3-5 years?

Can you explain the spike in closures and ceased operations in 2023 (25 closures, 13 ceased other) compared to 2022 and 2024? Were there systemic issues, market conditions, or operational changes that contributed to this pattern?

The contract requires 11 renewal conditions for the 10-year renewal term. Can you detail what remodeling, refurbishing, or renovation requirements are involved and provide estimated costs franchisees should budget for renewal?

With a $5,000 renewal fee and potential upgrade costs, what is the total estimated investment required to renew a franchise at the end of the initial 10-year term?

The mandatory arbitration clause requires disputes to be resolved through JAMS with venue in Columbia, Maryland. What are typical costs and timelines franchisees should expect if disputes arise, and can you provide references from franchisees who have gone through this process?

Personal guarantees are required from all owners with 5% or greater equity interest with unlimited joint and several liability. How does this liability extend across multiple franchise agreements if a franchisee operates multiple units?

You maintain supplier restrictions across 8 categories requiring purchases only from approved vendors. Can you provide a complete list of restricted categories and approved vendors, and what percentage of operating costs typically go to these mandated suppliers?

What support and training is provided to franchisees, and why does your Support & Training score of 79 fall below the typical range of 79.5-90.5 for this category?

Of the franchisees currently operating, what percentage are meeting the Item 19 financial projections, and how many are achieving the median gross sales of $728,401?

What was the status of the 1 pending litigation case, and when is resolution expected?

Can you provide contact information for franchisees who have terminated or transferred their units in the past 2 years so prospective franchisees can understand their reasons for exit?

The non-renewal rate is 0.9%. How many franchisees chose not to renew at the end of their initial terms, and what were their stated reasons for not continuing?

What specific metrics or benchmarks trigger franchisor intervention or termination, and how are these communicated to franchisees in writing?

How have royalty rates, ad fund requirements, and technology fees changed over the past 5 years, and are there plans to increase these ongoing costs?

Can you explain why the Investment Cost score of 71 falls below the typical range of 74.0-76.0, and what additional investment costs beyond the initial $50,000 franchise fee should franchisees anticipate?

What is your definition of territory encroachment, and how do you handle situations where franchisee performance or customer density suggests market overlap?