Kitchen Solvers

Can you explain the drivers behind the 11.9% termination rate, which is more than double the typical range for home services franchises? What are the primary reasons franchisees are being terminated?

Over the past 3 years, the system has experienced a 30.0% turnover rate. What specific issues led to this elevated turnover, and what changes have been implemented to improve retention?

The franchise fee is $60,000, which exceeds the typical range for this category. What does this fee include, and how does it compare to competitor offerings?

The transfer fee is $5,000, which is significantly below the typical $7,500-$15,000 range. Is this intentionally positioned to encourage transfers, and are there other fees or costs associated with transferring a franchise?

Can you provide detailed information on the 6-7 units that closed each year from 2022-2024? Were these voluntary closures or franchisor-initiated terminations?

What is the average length of ownership for franchisees who were terminated versus those who voluntarily exited?

The total potential contract term is 30 years (initial 10 + two 10-year renewals), which exceeds the typical range. What renewal fees, if any, are required at each renewal period?

Can you clarify the post-term non-compete restriction of 2 years within 25 miles? How is this enforced, and have there been any disputes or violations?

Regarding the binding arbitration requirement in La Crosse, Wisconsin: what is the average cost and duration of arbitration disputes, and can you provide examples of disputes that have been arbitrated?

The Item 19 financial performance data shows median gross sales of $736,175. What percentage of franchisees achieve or exceed this median, and what is the revenue distribution (top/bottom quartiles)?

How many units reported financial data in Item 19? Does the reported sample represent a significant portion of the current 59-unit system?

What support and services justify the $268.90 monthly technology fee, and is this fee subject to annual increases?

Given the elevated termination rate, what specific training, support, or performance metrics does the franchisor provide to help franchisees avoid termination?

Can you describe the circumstances of the 7 units that closed in 2024 and the 7 that were terminated in the same year? Were there common factors?

The system grew from 49 units 3 years ago to 59 units today (20% growth) while experiencing 30% turnover. How many new franchises were sold during this period?

Personal guarantees are required from all principal owners, with joint and several liability. Are there any limitations on this personal guarantee, and how is it enforced if the franchise fails?

What happens to a franchisee's customer relationships and ongoing contracts if their franchise is terminated for cause?

Can you provide a copy of recent franchise disclosure documents and Item 19 financial statements so I can independently verify the financial performance data?

Are there any pending lawsuits, regulatory investigations, or complaints filed with state franchise regulators that are not yet reflected in litigation data?

What percentage of franchisees who were terminated contested the termination or filed disputes through the arbitration process?