Kitchen Tune-Up

Can you provide details on the 2 cases where the franchisor was defendant—what were the claims and how were they resolved or are they ongoing?

The transfer fee of $24,950 is significantly higher than typical for this category. What does this fee cover, and is it negotiable or standardized?

Your system closed 28 units in 2024 compared to 11 in 2022. What factors contributed to this sharp increase in closures, and what steps is the franchisor taking to reverse this trend?

Why did your system lose 13 net units (-4.7%) in the past year after showing growth in 2022-2023? Is this trend stabilizing or expected to continue?

The franchisor appears to have initiated 2 litigation cases as plaintiff. What were the nature of these cases, and were they against franchisees, suppliers, or other parties?

Top quartile sales ($665,922) are below the typical range for home services franchises. What is the franchisor doing to support franchisees in reaching higher revenue levels?

The franchise fee of $19,950 is below typical, but the transfer fee of $24,950 is above typical. Can you explain the reasoning behind this fee structure?

What are the specific conditions under which the franchisor will not renew a franchisee's agreement at the end of the 10-year initial term?

Given the 2-year, 25-mile non-compete clause, how does the franchisor enforce this post-termination, and are there any instances where franchisees have challenged this restriction?

The termination clause allows the franchisor to terminate for service mark violations with only a 7-day cure period (24 hours to begin cure). Can you provide examples of what constitutes a service mark violation in practice?

How many of the 4 litigation cases involve disputes with franchisees versus other parties, and what were the primary dispute categories?

The System Health score is 33/100, significantly below the typical range. What specific operational or support issues does the franchisor acknowledge, and what improvements are planned?

The Risk Factors score of 56/100 is below typical. What are the primary risk factors identified, and how is the franchisor addressing them?

With territory protection in place but not exclusive, how does the franchisor prevent encroachment from other Kitchen Tune-Up franchises, and have there been disputes over territory boundaries?

Are there any pending litigation cases that could materially impact franchisees? Can you describe the nature of the 1 pending case?

Median gross sales are $358,151. What percentage of franchisees fall below this median, and what support exists for underperforming units?

The franchise agreement requires personal guarantees and spouse signatures. Has the franchisor pursued guarantors in any litigation or default situations?

Given the binding arbitration requirement in Brown County, South Dakota, what are the typical costs for franchisees to arbitrate disputes with the franchisor?

The renewal fee is $5,000. Are there any other costs or conditions associated with renewal beyond this fee, such as system updates or facility upgrades?

How many franchisees have exercised the option to renew at the end of their initial 10-year term versus allowing their agreements to lapse?