Ideal Siding Franchising (USA) Inc.

The royalty rate of 8.0% is above the typical 6.0-7.0% range for home services franchises. What is the justification for this higher rate, and are there volume-based reduction tiers?

You mention a minimum royalty amount for the 8.0% royalty and a monthly lead fee of $2,000 or 5% of gross sales (whichever is greater). How are these minimums calculated and what is the actual monthly burden on a typical franchisee?

The system grew from 6 units to 44 units in 3 years (94.3% CAGR). What percentage of this growth came from new franchisee recruitment versus organic expansion, and what are the pipeline projections for the next 2-3 years?

One franchisee was terminated and one unit closed in 2024. Can you provide details on the circumstances of these exits, including whether they were franchisor-initiated terminations or voluntary closures?

The initial contract term of 5 years is significantly shorter than the typical 10-year term in this category. Why was this shorter term chosen, and what factors influence renewal decisions at year 5?

The non-compete restriction is 20 miles, narrower than the typical 25-40 mile radius. How did you determine that 20 miles is sufficient to protect franchisees' territories from competition?

There is 1 litigation case where the franchisor was named as defendant. What was the nature of this case, how was it resolved, and what changes (if any) were made to prevent similar disputes?

The agreement specifies $50 per day late fees plus 24% annual interest on overdue royalties. How frequently do franchisees fall behind on payments, and what is the process for collecting these fees?

Bottom quartile franchisees generate $556,760 in gross sales. After accounting for 8% royalty, 1.0% ad fund, $250 technology fee, and $2,000+ monthly lead fees, what is the typical net profit margin for bottom quartile units?

The agreement lists 23 termination causes, including 21 non-curable defaults. Can you provide a breakdown of which non-curable defaults have been most frequently cited in terminations, and can any of these be negotiated or clarified in the agreement?

Personal guarantees are required from all principals and their spouses, covering even spouses with no ownership interest. Is this requirement negotiable, and what is the process for releasing a spouse from the guarantee after divorce or separation?

The post-term non-compete prohibits participation in 'any siding products and services business' within 20 miles for 24 months. How is 'siding products and services' defined—does it include related services like roofing, windows, or insulation?

The franchise fee is $55,000 with a $15,000 transfer fee. What is included in the initial franchise fee, and does the transfer fee cover full re-training and administrative costs for a new franchisee?

You offer 1 renewal option for 5 years at no renewal fee. Is the renewal guaranteed upon meeting performance standards, or is it at the franchisor's sole discretion? What are the specific renewal conditions?

The system has protected exclusive territories. How are territory boundaries determined, and what process exists to address disputes if a new franchisee's territory overlaps with or is adjacent to an existing franchisee's area?

Lead generation appears to be a significant cost component ($2,000/month minimum or 5% of sales). Does the franchisor provide these leads directly, or must franchisees generate their own leads while paying the lead fee?

Item 19 financial performance data is available. How many units reported data, what was the date range for this performance, and are there material differences in performance between units by geographic region or franchisee experience level?

The contract allows for only 2 curable defaults (both with 5-day cure periods). Are these cure periods fixed, or can they be extended for franchisees working in good faith to remedy a breach?

With rapid system growth of 144.4% in one year, how is the franchisor scaling support services (training, operations, lead generation) to maintain quality across the expanding unit base?

Transfer fee is $15,000. Is this fee refundable if the franchisor does not approve the proposed transferee, and what criteria does the franchisor use to approve or deny transfers?