Jan-Pro Regional Franchise Development

Can you provide details on the 3 pending and closed litigation cases where Jan-Pro was named as defendant? What were the allegations and how were they resolved?

The 4.0% royalty rate is substantially lower than the typical 6.0-8.13% for cleaning franchises. How does this compare to competitors, and are there any conditions under which the rate could increase?

Your financial performance data shows median unit sales of $4.98 million, more than 12 times the typical cleaning franchise median. What explains this significant variance—are these multi-unit regional developers rather than individual unit franchisees?

The contract allows for 999 renewal options of 10 years each, creating a potential 10,000-year term. What is the practical renewal process, and are there any scenarios where renewal could be denied or terms substantially changed?

Can you clarify the 24 non-curable termination causes listed in the agreement? Which violations result in immediate termination without a cure period?

How many of the 14 transfers over the past 3 years were requested by franchisees versus initiated by the franchisor? What are the typical reasons for transfers?

The agreement requires maintaining 'Supported System Sales within the top 90% of regional developers.' How is this performance metric calculated, and what happens if a franchisee falls below this threshold?

Can you provide the details on the 1 closure in 2024 and the 1 termination in 2024? Were these voluntary or franchisor-initiated?

The 2-year non-compete restriction applies within the Territory after termination. How is the Territory geographically defined, and can franchisees operate in adjacent or overlapping areas if they move outside their defined territory?

What is included in the 'Supported System Sales' calculation referenced in the minimum performance standards, and how frequently is this measured?

The technology fee is $130 monthly. What specific services and technology platforms does this cover, and can franchisees use alternative systems?

How many units are currently operated by franchisees versus the franchisor or franchisor-affiliated entities? Is the 107-unit count entirely franchisee-operated?

The agreement specifies 5 supplier restriction categories and requires pre-approval of manufacturers and suppliers. How restrictive are these categories in practice, and what percentage of supplies typically require franchisor approval?

Can you explain why the pending litigation case has not been resolved? What is the nature of this case, and when is a resolution expected?

The renewal fee is $20,000. Does this fee increase with renewals, or does the franchisor have discretion to adjust terms at renewal time?

Of the 8 transfers in 2022 and 2 transfers in 2023, how many involved sales to third parties versus transfers within existing franchisee families?

What is the franchisor's policy on encroachment, and how do you define and protect exclusive territories against potential overlap?

The agreement includes personal guarantees from owners and spouses. Does the franchisor pursue personal guarantees if a franchise fails, and what is the typical recovery experience?

Are there minimum purchase requirements for supplies from franchisor-approved vendors, and do approved vendors offer competitive pricing compared to non-approved alternatives?

How does the 10% year-over-year growth requirement interact with the top 90% sales ranking requirement? What happens if a franchisee meets one but not the other?