LIME PAINTING

The technology fee of $900/month is significantly above the typical range for home service franchises. What specific software, tools, and services are included in this fee, and how is it justified compared to competitors?

Transfer rate is 13.4%, more than double the typical range. What are the primary reasons owners are transferring their units? Are these voluntary sales or franchisor-encouraged transitions?

Unit closures increased to 5 in 2024 compared to 1 in each of the prior two years. Can you explain the specific reasons for these 5 closures and what percentage were owner-initiated versus franchisor-terminated?

Bottom quartile sales of $506,953 is higher than typical for this category. Can you provide the median and average sales separately by region or unit age to understand performance variation?

The total potential contract term of 30 years is 50% longer than the typical range. What are the 7 specified conditions franchisees must meet to qualify for renewal, and how frequently do franchisees successfully renew?

The franchise fee of $60,000 is at the high end of the typical range. What does this fee cover, and are there any additional startup costs not reflected in Item 7 of the FDD?

The non-compete clause restricts franchisees from competing in painting and ancillary home improvement services for 2 years within 25 miles. Has this been enforced, and are there any cases where franchisees have challenged its scope?

Personal guarantees are required from both franchisee and spouse regardless of spouse ownership interest. Can you explain the rationale for requiring spousal personal guarantees, and how often has this been invoked in disputes?

Franchisees must purchase from approved or designated suppliers across 10 categories. Can you provide the list of approved suppliers, typical markup ranges, and whether franchisees can negotiate alternative suppliers?

Dispute resolution requires mediation only at the franchisor's option with mandatory litigation in Arapahoe County, Colorado. How many disputes have been filed in the past 3 years, and what was the average resolution timeframe?

The renewal fee is $10,000, identical to the transfer fee. Is there any discount for early renewal, and does renewal require execution of a new franchise agreement with current terms that may differ from the original?

What is the typical payback period for franchisees, and can you provide profitability data broken down by unit age, market size, and service offerings?

The system grew 37% in 3 years while maintaining zero terminations. What is the attrition rate among units opened in the first 2 years of the franchise system's life?

Can you provide the specific support and training offerings, including initial training length, ongoing coaching frequency, and dedicated support staff per 100 franchisees?

The franchisee must comply with 10 supplier categories and franchisor audits. What are the consequences of non-compliance, and how frequently are audits conducted?

With a 2-year non-compete and exclusive territory, what is the franchisee's path to exit if they want to leave the business before their initial 10-year term expires?

Can you explain why the Financial Performance score (77) is significantly above the typical range (54-60) while the Ongoing Fees score (60) falls below the typical range (62)?

Has the franchisor ever rescinds or modified the franchise agreement for existing franchisees, and if so, what changes have been made and how were franchisees compensated?