Hudson Valley Swim

The franchise fee of $59,500 exceeds the typical range for childcare and education franchises by approximately $4,500-$19,500. What specific training, support, or exclusive benefits justify this premium pricing compared to competitors?

Your system has grown at a 48.1% compound annual growth rate over 3 years, more than triple the typical growth rate for your category. What is driving this exceptional growth, and are there any plans to expand more aggressively in the near term?

Average gross sales of $258,557 are at the lower end of the typical range for your category. Can you provide median sales figures and explain the variance between top and bottom performers? What factors contribute to this performance gap?

The renewal fee is 20% of the then-current initial franchise fee. Given that your franchise fee is already at a premium, how will renewal costs be calculated and communicated? Can you provide examples of what renewal fees would be at 5-year intervals?

Your agreement requires a minimum monthly royalty payment regardless of actual sales performance. What is the minimum monthly amount, and how frequently does this create cash flow challenges for franchisees operating at lower sales volumes?

Late payments trigger a $100 fee per occurrence plus 18% annual simple interest. Can you clarify how this is calculated on a monthly basis and provide examples of what a franchisee would owe on a $5,000 overdue royalty payment after 30, 60, and 90 days?

The agreement identifies 16 non-curable termination events allowing immediate termination without a cure period. Can you list all 16 non-curable events and explain which are most commonly triggered in practice?

You require all franchisees and spouses to sign personal guarantees covering all present and future obligations. Does this unlimited personal guarantee extend to obligations added to the agreement via system changes during the franchise term, or is it limited to obligations existing at signing?

All disputes must go through non-binding mediation followed by binding arbitration in the city closest to your headquarters. What is your headquarters location, and what are the typical costs and timelines franchisees should expect for mediation and arbitration proceedings?

You restrict franchisees to designated or approved suppliers in 8 categories. Can you provide a complete list of these 8 categories, identify the specific approved suppliers for each, and disclose whether the franchisor receives any rebates or revenue sharing from these suppliers?

The agreement grants the franchisor the right to modify supplier restrictions during the term. Have you exercised this right in the past, and if so, what supplier changes have been required and what was the financial impact on franchisees?

With zero litigation cases to date and zero unit terminations, do you have any insight into why your franchisee retention is perfect while other childcare systems experience typical turnover? Are you selecting franchisees differently, or is your support model distinctly different?

Given that your earliest franchisees are likely no more than 3 years into their terms, what retention patterns do you anticipate as units approach renewal decisions? Do you have any data on renewal intentions from existing franchisees?

Participation in a profit-sharing program is mentioned in your financial obligations section. Can you explain how this profit-sharing program works, what percentage franchisees contribute or receive, and whether participation is mandatory or optional?

The renewal agreement requires satisfying 8 specific conditions. Beyond paying the 20% renewal fee, what are the other 7 conditions, and how difficult have they been for franchisees to satisfy in practice?

Can you provide the Item 19 financial performance disclosure in detail, including the number of franchisees reporting at each revenue level, operating expense ranges, and net profit figures by unit age and location type?

What is the typical time to profitability for a new Hudson Valley Swim franchise, and at what point do franchisees typically break even on their initial $59,500 investment?

Since the system has grown to 13 units with zero transfers, have any franchisees expressed interest in transferring their units, and if so, what were the reasons they decided against transfer?

Are there any geographic restrictions on where new franchises can be opened, and how do you determine when a market is saturated? Would you open a second franchise in the same metropolitan area if a franchisee applied?