Lightspeed Restoration

Can you explain the circumstances of the 3 unit closures and 3 terminations that occurred in 2024? What specific issues led to each termination?

The termination rate of 16.7% is substantially higher than typical for home services franchises (0.0-6.83%). What are the primary reasons franchisees are being terminated, and are these correctable issues or fundamental business model problems?

Why is the Franchise Fee set at 5,000 when the typical range for home services franchises is 45,000-59,900? Does this low fee correlate with reduced startup support or training?

The monthly Technology Fee of 750 exceeds typical ranges by 25-379%. What specific technology services and systems are included, and is this fee negotiable or fixed for all franchisees?

Can you provide details on the single litigation case from the past 3 years? What was the nature of the dispute, who initiated it, and what was the outcome?

The Transfer Fee of 24,950 is substantially above the typical range of 7,500-15,000. What approval process and restrictions apply to franchise transfers, and is this fee refundable under any circumstances?

Given the non-exclusive territory designation, are there specific protections against encroachment by other Lightspeed Restoration franchisees within the 25-mile protected territory?

The Royalty Rate of 8.0% is above the typical range of 6.0-7.0%. Are there volume discounts or reduced rates available based on revenue performance?

Can you clarify the 4 renewal conditions that apply before the 2 x 5-year renewal options can be exercised? What specific performance or compliance metrics must franchisees meet?

The system grew 50% in unit count (9 units) in 2024. Are all new units performing at the reported Median Gross Sales of 791,856, and at what point do new franchisees typically achieve profitability?

How many of the 27 current units are in their first year of operation versus mature units? This would help contextualize whether the high turnover rate is driven by startup failures or underperformance of established locations.

The termination clause includes a 24-hour cure requirement for service mark violations. What specific violations trigger this clause, and how frequently is it enforced?

Regarding the binding arbitration clause with waived class action rights, have there been any arbitration disputes, and can you provide examples of how disagreements between franchisees and the franchisor have been resolved?

The non-compete clause restricts franchisees within 25 miles for 2 years post-termination. Has this restriction been enforced in any of the 2024 terminations, and are there any geographic carve-outs?

Personal guarantees are required from anyone with control or beneficial interest, including spouses. What happens if a spouse objects to signing, and are there alternative structures to limit personal liability?

Can you provide the actual Item 19 disclosure showing per-unit profitability and average operating expenses? The Median Gross Sales of 791,856 is meaningful only in context of costs and net income.

Why does the Renewal Conditions Count (4) fall below the typical range of 6.0-9.0 for home services franchises? Does this provide franchisees with more favorable renewal terms than industry standard?

Are there specific territories currently available, and what is the average territory size by revenue potential or service area?