Hommati

The ad fund rate of 4.0% and royalty rate of 8.0% both exceed industry norms for real estate franchises—what specific services and marketing initiatives justify these higher ongoing fees?

Why has the closure rate risen significantly year-over-year, from 5 closures in 2022 to 20 in 2024? Can you break down how many of these are business closures versus renewals not pursued?

What is driving the 11.3% non-renewal rate? Are franchisees choosing not to renew due to profitability concerns, market saturation, or other factors?

Average gross sales of $130,813 fall below the industry range for real estate franchises—what percentage of franchisees achieve profitability at this sales level after accounting for franchise fees and ongoing costs?

The franchise fee of $44,900 exceeds the typical range for this category. What is included in this fee, and how does it compare to comparable real estate franchise opportunities?

Can you provide details on the 13 units that 'ceased other' in 2023 and 15 in 2024? What circumstances led to these exits?

Given the 30-year potential term (2x 10-year renewals), what are the renewal fee requirements at the end of the initial 10-year term, and are there any changes to royalty rates upon renewal?

The binding arbitration clause in Franklin County, Ohio requires resolution there regardless of franchisee location. How many disputes has this clause generated, and what were the average costs for franchisees?

The personal guarantee clause requires owners with 20% or greater interest to guarantee all obligations to the franchisor. Are there any caps on personal liability, or are guarantees unlimited?

Territory is protected but not exclusive—can the franchisor place additional franchisees within your defined territory, and if so, what restrictions apply?

What support and training is provided post-launch given the 74/100 support score, and how does this translate into helping franchisees reach the $96,227 median sales level?

Has the franchisor adjusted its fee structure or business model in response to the rising closure rate and declining unit count?

Can you provide Item 19 financial performance data broken down by territory size, experience level, and location type to help assess realistic earnings potential?

What is the typical payback period for the $44,900 initial investment given the median gross sales of $96,227?

Are there any financing programs or partnerships available to help offset the higher-than-typical franchise fee?

How does the 1-year / 25-mile non-compete compare to comparable real estate franchises, and have there been enforcement actions?

The system score is only 39/100—what specific operational or management challenges is the franchisor addressing to stabilize the franchise?