Can you explain the spike in unit terminations from 3 in 2023 to 17 in 2024? Were these franchisor-initiated or franchisee-initiated?
#1
What specific factors contributed to the increase in unit closures from 16 in 2022 to 26 in 2024?
#2
What were the 2 litigation cases against Keystone about, and have they been resolved?
#3
Given the 6.1% termination rate exceeds the typical range, what performance standards trigger franchisor termination and how are they enforced?
#4
Why is the franchise fee of $12,500 significantly lower than the typical range of $15,000-$35,000 for insurance franchises?
#5
With only 2 renewal conditions (below the typical 5-8 range), what specific conditions must franchisees meet to renew their 5-year agreement?
#6
The territory is non-exclusive with no encroachment protection—how does Keystone prevent it from opening competing units in your service area?
#7
Can you provide detailed financial performance data (Item 19) showing median or average gross sales for franchisees?
#8
What is the renewal fee structure, and are there any additional costs associated with renewing your franchise agreement after 5 years?
#9
Regarding the 2-year non-compete clause covering any state where Keystone sells—how is this enforced and what are the specific customer contact restrictions?
#10
Of the 18 net unit decline in the past year, how many were due to franchisor terminations versus voluntary closures by franchisees?
#11
What support and training does Keystone provide, and why is this data not available in the franchise disclosure document?
#12
How has the termination rate of 6.1% compared to the previous 2 years, and what is the trend going forward?
#13
Are there any pending litigation cases against the franchisor that are not yet reflected in the 3-year history?
#14
What is the average tenure of franchisees who have been terminated versus those who have renewed successfully?
#15
Does Keystone offer financing or funding assistance given the low franchise fee relative to initial investment costs?
#16
How does Keystone calculate its investment score of 84 (above typical range), and what specific costs are included?
#17
What happens to customer relationships and accounts if a franchisee's unit is terminated—are they retained by Keystone or transferred to another franchisee?
#18