Kitchen Refresh

The franchise fee of $16,000 is significantly lower than the typical range of $45,000-$59,900 for home services franchises. What accounts for this substantially lower initial investment, and are there additional upfront costs not reflected in the franchise fee?

With only 8 current units and 0 units 3 years ago, what is your growth strategy and timeline for unit expansion? Do you have specific unit targets for the next 3-5 years?

Termination and transfer rates both stand at 12.5%, which is roughly double the typical range. Can you provide details on the specific reasons for these 1 termination and 1 transfer that occurred in 2023?

Median gross sales of $98,570 are less than one-third the typical range for this franchise type. What factors explain the lower revenue per unit, and what is your plan to increase unit profitability?

The Ad Fund Rate of 4.0% is double the typical 1.0-2.0% range for home services franchises. How is this marketing fund allocated, and what specific marketing support and results should franchisees expect?

The franchise agreement contains 23 non-curable defaults that result in automatic termination without notice, exceeding the typical range of 14-21. Can you provide a detailed list of these 23 defaults and examples of how they are applied in practice?

What was the specific nature of the litigation case filed against the franchisor, and has it been resolved? What was the outcome?

The agreement requires exclusive purchase of studio product displays and cabinet components from the franchisor or affiliates. What are the pricing controls on these mandatory purchases, and how do prices compare to third-party alternatives?

Given that territory is protected but not exclusive, what protections prevent the franchisor from opening competing Kitchen Refresh units within or adjacent to my territory?

The renewal fee equals 10% of the then-current initial franchise fee. If the initial fee increases significantly over 10 years, what would the renewal fee be, and are there any caps on fee increases?

For the 1 unit terminated in 2023, was this a franchisor-initiated termination or a franchisee non-renewal? What were the circumstances?

What operational support and training does the 100/100 Support & Training score reflect, and what ongoing support should franchisees expect after the initial training period?

The post-term non-compete covers 24 months within 30 miles. How is compliance monitored, and what happens if a franchisee begins a competing kitchen business within this radius and timeframe?

The agreement requires personal guarantees from all principals and spouse guaranties if applicable. Are there circumstances under which the franchisor will release these guarantees, and what claims have been made against guarantors historically?

Item 19 Financial Performance Representations indicates median gross sales of $98,570. How many units reported these figures, and does this represent a minimum or typical performance expectation for franchisees?

All disputes require binding arbitration in Buffalo. How many disputes have gone to arbitration, and what were the outcomes? What costs should franchisees budget for arbitration?

The Technology Fee of $100/month is below typical range. What specific technology platform, systems, and tools does this fee provide, and are there additional tech costs not included in this amount?

With a 5-day cure period for payment defaults, what happens if a franchisee misses a payment by a single day? Has the franchisor enforced termination for minor payment delays?

The franchise agreement provides for encroachment protection despite non-exclusive territory. What specific commitments does the franchisor make regarding encroachment, and what remedies exist if violated?

Can you provide a breakdown of where the 5 new units added in 2024 came from—are these new franchisees signing or conversions from other systems? What is the retention rate for these new units?