Can you provide detailed information about the 3 units that closed in 2024? What were the stated reasons for closure from each franchisee?
#1
The transfer fee of $20,000 is above the typical range for business services franchises. How does this fee compare to competitors, and is it negotiable?
#2
The monthly technology fee of $695 is above typical ranges. What specific systems and services does this cover, and are all components mandatory?
#3
With a 60% turnover rate in the past year, what changes has the franchisor made to retention and support? Are there retention metrics tracked?
#4
The franchise has remained at 5 units for 3 years with no growth. What is the franchisor's growth strategy, and how many new franchises are projected to be sold in the next 2 years?
#5
Why does the contract contain 25 termination causes (above typical range) compared to competitors in the staffing services space?
#6
What specific protections exist against encroachment? The data indicates 'False' for encroachment protection—does this mean the franchisor can open competing units near mine?
#7
Can you explain the 15 non-curable defaults in the franchise agreement? Which violations allow immediate termination without a cure period?
#8
The System Health score is 35 (well below typical range of 46-70). What specific operational or financial challenges does the system currently face?
#9
Are there any pending disputes or claims from the 3 franchisees who closed in 2024? Will the franchisor stand behind the confidentiality of their exit experiences?
#10
Item 19 (Financial Performance Representations) is not included in the franchise disclosure. Will the franchisor provide historical revenue and profitability data for existing units?
#11
The renewal fee is $10,000. Are there any conditions under which renewal could be denied after 10 years, and what happens if you decline to renew?
#12
Personal guarantees are required from all owners and their spouses. What is the extent of liability exposure, and can this be limited through negotiation?
#13
With a 2-year non-compete within 25 miles, what happens if I want to remain in the staffing business after exiting the franchise? Are there any exceptions?
#14
The Risk Factors score is 0 (well below typical range of 60-78). Does this indicate incomplete data collection or that specific risk factors were not evaluated?
#15
How many franchise applications were rejected or did not close in the past 2 years? What were the main reasons?
#16
What is included in the ongoing support beyond the $695 monthly technology fee? Are there charges for training, marketing materials, or field visits?
#17
Can you provide references from the 2 remaining franchisees? Are they profitable, and do they recommend the franchise opportunity?
#18