Intelligent Office

Can you provide the specific reasons for the 4 unit closures in 2023-2024? Were these franchisor-initiated terminations or voluntary closures?

The system has contracted from 45 to 41 units over 3 years with a termination rate of 4.9%. What changes in support, territory policies, or system operations have been made to address this trend?

Why is the monthly technology fee set at $2,000, which is 4-20 times higher than the typical range of $100-$500 for business service franchises? What specific services and technology are included?

The transfer fee of $34,500 significantly exceeds the typical range. What justifies this fee amount, and are there any payment plan options available?

Given the 35-year initial term, what specific circumstances would trigger franchisor termination rights, and what cure periods apply?

With a termination rate of 4.9%, what are the most common reasons franchisees are terminated versus choosing to exit voluntarily?

The advertising fund rate of 3.0% is above the typical range. How is this fund allocated, and can you provide a breakdown of marketing spend for the past 2 years?

Can you clarify the royalty structure? The agreement specifies the greater of 6% of gross revenues or $1,500 monthly—has the minimum monthly amount been adjusted in recent years?

What encroachment protections are actually in place if the territory is not exclusive? Are there documented cases where the franchisor has honored these protections?

You offer only 1 renewal option at year 35. What is the franchisor's track record for approving renewal applications? Are there franchisees whose renewals have been denied?

Given the System Health score of 38 (below the typical 46-70 range), what specific performance or operational metrics is the system focusing on to improve stability?

The franchise agreement requires a minimum of 4 hours of mediation before binding arbitration. Have any disputes reached arbitration, and if so, what were the outcomes?

Spouses must sign confidentiality agreements. Can you clarify what specific information is covered and what the consequences are for breach?

The late payment policy includes 5% late charge plus 18% annual interest. Has this been applied frequently, and are there any negotiation points on these terms?

With 41 current units and declining growth, what is the franchisor's plan to expand the system? Are there geographic markets where expansion is planned?

Item 19 shows average gross sales of $601,708. What percentage of franchisees achieve or exceed this average, and what is the range of performance across the system?

The 10-day cure period for payment defaults is quite short. What support or communication does the franchisor provide before enforcing this clause?

Can you provide a list of franchisees who have exited in the past 3 years and their contact information so I can discuss their experiences?

The agreement requires commercial general liability insurance. What minimum coverage limits are required, and can you provide sample policies that meet these requirements?

Are there any pending disputes, complaints with state franchise regulators, or class action lawsuits involving Intelligent Office franchisees that should be disclosed?