Hommati Franchise Network

What specific operational or market challenges have led to the closure of 54 units over the past 3 years, and does the franchisor provide data on closure reasons?

The system has declined from 136 units to 117 units in 3 years. What is the franchisor's growth strategy to reverse this trend, and what unit growth targets exist for the next 3-5 years?

Your royalty rate of 8.0% and ad fund rate of 4.0% total 12.0% in ongoing fees, above the category average. How do these rates compare to competitors, and are there any circumstances under which these rates are reduced or waived?

The franchise fee of $44,900 exceeds the category median. What is included in this fee, and does it cover initial technology setup, training, and marketing materials, or are those additional costs?

Turnover rate over 1 year is 17.1%, with a 3-year turnover rate of 40.4%. What is the median tenure of operating franchises, and what percentage of franchisees achieve profitability within the first 2-3 years?

Item 19 shows median gross sales of $98,238. What is the median net profit margin, and does this account for the total ongoing fees (royalties, ad fund, technology) plus initial investment recovery?

Non-renewal rate is 10.5% annually. What is the primary driver of non-renewals—franchisee choice, franchisor choice, or mutual agreement? What happens to territories following non-renewal?

Territory is protected but non-exclusive. Can the franchisor open additional company-owned units or recruit competing franchises within my protected territory?

The total potential contract term is 30 years (10 initial + 2 x 10 renewals). Are renewal terms guaranteed at the same royalty rate and fees, or can terms be renegotiated at renewal?

Termination rate is 4.5%, and 6 franchises were terminated in 2024 alone. What are the primary reasons for termination, and what is the dispute resolution process if I contest a termination decision?

The binding arbitration clause requires disputes to be resolved in Franklin County, Ohio, with no jury trial or class action options. How many disputes have gone to arbitration in the past 3 years, and what were the outcomes?

What ongoing support and training does the franchisor provide, and how has support been adjusted to address the high closure and turnover rates?

The technology fee is $195 monthly. What services does this cover, and is the technology proprietary or can franchisees use third-party tools?

Item 19 financial data varies significantly (median $98,238 vs. average $154,732). What is the range of gross sales across franchises, and how many franchises fall below the median?

Given the 1-year 12.0% net unit decline and acceleration of closures, what revenue model changes, if any, is the franchisor implementing to support franchisee profitability?

Transfer fee is $5,000 and renewal fee is $1,500. Are there any other ongoing or periodic fees not listed, such as marketing co-op, technology updates, or audit fees?

The non-compete clause restricts activity within 25 miles for 1 year post-exit. Does this apply to all former franchisees, or are there exceptions based on termination vs. non-renewal circumstances?

Can you provide a list of franchisees who have exited in the past 2 years and contact information so I can speak with them about their reasons for closure or non-renewal?