HouseMaster

The franchisor has been named as defendant in 2 litigation cases in the past 3 years. What were the nature of these cases, and what were the outcomes or current status?

System units declined 4.76% annually over 3 years (272 to 235 units). What is management's explanation for this contraction, and what initiatives are being implemented to stabilize or grow the system?

Median gross sales of $232,612 are 19% below the typical range for home services franchises. What percentage of franchisees achieve gross sales above this median, and what is the range of sales performance across the system?

The Ad Fund Rate of 2.5% exceeds the typical range of 1.0-2.0%. How is this ad fund deployed, and can franchisees see itemized accounting of how their contributions are spent?

Non-renewal rate is 6.4% annually. What are the primary reasons franchisees choose not to renew, and are there performance or support issues driving these decisions?

The franchise requires minimum annual gross sales in the top 90% compared to all franchised units. How is this performance threshold enforced, and what are the consequences for units that fall below it?

Royalty rate is 7.5%, above the typical 6.0-7.0% range for home services. What additional services or support justify this higher royalty rate compared to competitors?

Technology Fee of $104 monthly is significantly below typical rates. What technology systems and tools does this cover, and are there additional technology costs not included in this fee?

The franchise agreement includes personal guarantees and spousal guarantees for franchisor financing. Under what circumstances does the franchisor require financing, and what are the typical terms?

Renewal requires 'modernization or replacement requirement' compliance. What specific modernization investments are required at renewal, and what are typical costs involved?

46 units closed in 2022, dropping to 26 in 2024. Was the 2022 closure spike due to a specific event, policy change, or economic factor, and how did the franchisor respond?

Territory is protected but not exclusive. How does the franchisor define and enforce protection against internal competition or encroachment by other franchisees?

Transfer Fee is $7,500 and Renewal Fee is $2,500. Are there other fees not listed (e.g., training, marketing fund, equipment) that franchisees should budget for?

The franchise requires approval for products, services, inventory, equipment, and advertising. Can franchisees source these items from any approved vendor, or are there single-source suppliers, and what are the cost implications?

Late payment penalties include $10 per day plus interest. What is the interest rate charged, and when do late fees begin accruing (e.g., immediately after due date)?

System Health score is 38/100, well below the typical 50-70 range. What specific operational, financial, or strategic challenges is the system facing?

Of the 26 units closed in 2024, how many were closed due to franchisee request versus franchisor action, and what were the primary causes?

Can you provide references from 10-15 current franchisees, including both high-performing units and those in the bottom quartile of sales performance, to discuss their experiences?