Jan-Pro Franchising International

What are the specific allegations or claims in the 4 litigation cases filed against the franchisor, and what is the nature of the 1 pending case?

Can you provide the outcomes or settlements for the 3 closed litigation cases, and what timeline is expected for the pending case?

Your royalty rate of 4.0% is significantly lower than the typical 6.0-8.13% range. What specific services, support, or infrastructure justify this below-market rate, and is there any risk it could increase in future renewals?

The advertising fund rate of 0.5% is below typical rates of 1.0-2.0%. How is this fund allocated, and do you anticipate it will increase as the system grows?

Your reported median gross sales of $5.2M substantially exceed the typical range for cleaning franchises. Can you clarify whether this represents systemwide averages, commercial-only locations, or includes revenue from all service lines?

What percentage of your current 108 units achieve the 'top 90% ranking in supported system sales' or '10% consecutive 3-month growth' performance standards required after year 3?

Of the 2 units that transferred in the past year, what were their reasons for transferring, and what was their performance trajectory before transfer?

The franchise agreement lists 24 termination causes, above the typical 14-22 range. Can you identify which 2-3 causes are most frequently invoked, and provide examples of recent terminations based on these causes?

Your non-compete restricts competitive activity for 2 years within the franchisee's territory but no mileage restriction is specified. How is the 'territory' defined post-termination, and could a franchisee operate outside their former territory immediately?

The binding arbitration clause requires disputes to be resolved in the county and state of the franchisor's principal office. How many disputes have actually gone to arbitration in the past 3 years, and what were the outcomes?

Personal and spouse guarantees are required with unlimited scope. Has the franchisor ever pursued personal guarantees against franchisees post-termination, and if so, for what amounts?

Can you provide specific examples of how the 5% late payment penalty on overdue amounts is enforced, and at what point a franchisee moves from late payment status to termination for nonpayment?

The 10-day cure period for payment defaults is quite short. What is the typical dollar threshold at which the franchisor exercises this termination right, and are partial payments accepted to avoid termination?

With 24 termination causes compared to the category typical of 14-22, which causes are unique to Jan-Pro, and how are they different from those of competing cleaning franchises?

Your renewal fee is $20,000 but the franchise fee is $50,000. Upon renewal at year 10, what additional fees, training costs, or equipment updates are typically required?

Item 19 financial performance data is provided, but what is the definition of 'Gross Sales'—does it include all revenue sources, and are there any significant excluded categories?

The system shows 1 pending litigation case. Can you disclose the general subject matter (e.g., royalty dispute, territorial, non-compete violation, misrepresentation) without identifying the parties?

Given the exclusive territory with encroachment protection, what is the specific mechanism for handling encroachment complaints, and has the franchisor ever redrawn or reduced territories of existing franchisees to accommodate new franchisees?

Can you clarify whether the $130 monthly technology fee is mandatory for all franchisees, what technology platforms it covers, and whether franchisees can opt out or use alternative systems?