Your franchise fee of $25,000 is significantly below the typical range of $36,250-$51,225 for technology franchises. What is the rationale for this lower entry cost, and are there plans to adjust fees for new franchisees?
#1
Your system experienced 34.1% CAGR over 3 years, substantially above the typical 26% range. What market conditions or changes in franchising strategy drove this growth, and is this pace sustainable?
#2
Item 19 financial performance disclosure is not provided. What are the median and average gross sales figures for franchise units, and how many units are currently reporting financial data?
#3
Despite rapid growth to 427 units, why do you only have 12 termination causes listed in your franchise agreement compared to the typical range of 14-19? Which causes common to your category are excluded?
#4
You offer a 30-year total potential term (10-year initial plus two 10-year renewals), which exceeds the typical 10-20 year range. Why does your system provide such an extended potential commitment period?
#5
Your territory is protected but not exclusive. Can you clarify what protections franchisees have against encroachment by other iFixandRepair franchisees, corporate-owned locations, or alternative channels?
#6
Zero terminations have occurred in the past 3 years. Can you provide examples of circumstances that would trigger franchisor-initiated termination, and how often this has occurred historically?
#7
The post-term non-compete restricts activity within 20 miles of franchisee locations and 'any other franchise locations.' Does this mean the non-compete expands if the system grows, potentially affecting multiple locations indefinitely?
#8
Your franchise agreement requires exclusive purchasing from the franchisor, affiliates, or approved suppliers. Can you provide a detailed cost breakdown showing how franchisor-supplied equipment and parts compare to market rates?
#9
Renewal conditions include payment of a renewal fee equal to 25% of the then-current franchise fee. If fees increase to the typical range, would a current franchisee at renewal face a $9,000+ renewal fee?
#10
Personal guarantees are required from all entity owners covering both monetary and performance obligations. Are there any limitations on liability exposure, or are franchisees liable for full system damages?
#11
You have 0 pending litigation cases. Can you disclose the nature and resolution of any disputes resolved outside of formal litigation in the past 3 years, including franchise relationship disagreements?
#12
With 1.4% annual exit rate and zero terminations, what percentage of the 6-7 annual closures are attributed to underperformance versus other factors such as relocation or life circumstances?
#13
Your technology fee is $150 but no annual technology fee increase rate is specified. Does this fee increase annually, and if so, by what percentage or mechanism?
#14
The system grew from 177 to 427 units in 3 years. What operational support infrastructure (training, field support, technology systems) has been added to maintain service quality during this 140% expansion?
#15
What is the renewal fee mechanism after the first renewal? Is it 25% of the then-current franchise fee for all subsequent renewals, potentially creating escalating costs?
#16
Can you provide the actual unit profitability data by cohort (franchisees opened in 2022, 2023, 2024, 2025) to show whether newer units in the accelerating growth phase are performing as well as earlier units?
#17
Territory is protected but not exclusive. What is your policy on multi-unit ownership, and could a single franchisee eventually hold multiple territories creating operational consolidation?
#18