The franchise system has only 1 unit currently and has remained at that level for 3 years—what is the franchisor's growth strategy and timeline for recruiting additional franchisees?
#1
Median gross sales are reported as $310 versus average sales of $481,734—can you clarify how this median figure was calculated and whether it represents a full-year operating unit?
#2
The Item 19 financial performance disclosure shows a significant gap between median and average sales—how many units are currently reporting financial data, and are all reporting units in their first year of operation?
#3
Why does the contract include 26 termination causes (above the typical 14-21 for this category) and what specific conduct triggers non-curable immediate termination versus the 5-30 day cure periods?
#4
The non-compete clause specifies 1 year and 50 miles, which is shorter in duration but broader in geographic scope than typical for home services—how was this specific radius determined and how is it enforced?
#5
Can you provide the specific 7 renewal conditions referenced for the single 10-year renewal option and explain what 'upgrade and remodel' obligations entail?
#6
The transfer fee of $5,500 is below industry standard—under what circumstances would a franchisee trigger this fee, and are there conditions where transfer is prohibited?
#7
What are the 17 curable defaults that allow 5-day versus 30-day cure periods, and how frequently have these been invoked against existing franchisees?
#8
The post-term non-compete restricts 'ownership, employment' in junk removal for 18 months within 50 miles—does this restriction apply to all ownership interests or only decision-making positions?
#9
The contract requires binding arbitration in Ann Arbor, Michigan—what are the estimated costs and timeline for arbitration, and can franchisees appeal arbitration decisions?
#10
Personal guarantees are required from all owners with 10% or greater equity—are spouses required to execute guarantees even if they have no ownership interest in the franchise?
#11
Minimum monthly gross sales requirements apply after year one—what are these specific thresholds, how are they measured, and what penalties apply for non-compliance?
#12
Late payment fees are $50/day plus 18% annual interest—are there grace periods before penalties accrue, and can these fees be negotiated for seasonal business fluctuations?
#13
The Support & Training score of 77 is below the typical range—what specific training and ongoing support hours are guaranteed, and are there additional fees for training beyond the initial franchise fee?
#14
The Investment score of 65 is below typical—can you provide an itemized breakdown of all initial investment costs beyond the $55,000 franchise fee?
#15
The Risk Factors score of 80 is above typical range—what specific risk factors drove this elevated score and how does the franchisor mitigate these risks?
#16
The Financial Performance score of 40 is substantially below typical—what factors contributed to this low score and do they reflect system maturity or other concerns?
#17
With zero litigation history, has the franchisor faced any disputes that were resolved through arbitration or informal settlement that would not appear in court records?
#18
Can you provide contact information for the single existing franchisee so I can conduct independent due diligence on unit economics and franchisor support quality?
#19
What is the franchisor's definition of 'junk removal and related services' for purposes of the 50-mile non-compete, and does it include furniture removal, estate cleanouts, or only construction debris?
#20