The technology fee of $18/month is substantially below the category norm of $130-$500/month. What specific technology services and tools does this fee cover, and are there any additional technology costs not included in this monthly fee?
#1
Transfer fees of $1,500 are significantly lower than the typical $5,500-$15,000 range. What is included in the transfer process, and are there any additional costs or requirements when transferring a franchise?
#2
Your Item 19 financial performance data shows average gross sales of $410,782, which is below the typical range of $464,508-$1,660,695. What explains this below-average performance, and what is the sales trajectory for newer vs. established units?
#3
Bottom quartile units reported sales of $79,801, which falls below the typical range. What support or intervention does the franchisor provide to underperforming units, and what is the typical timeframe for units to reach profitable sales levels?
#4
In 2022, the system experienced 6 closures out of 70 units (8.6% closure rate). What were the primary reasons for these closures, and what changes did the franchisor implement to reduce closures to 1 unit in 2024?
#5
The financial obligation clause requires territories with more than 30,000 Qualified Households to generate minimum revenue of $6 per owned Qualified Household. How is this threshold calculated, what happens if a unit fails to meet it, and how frequently are these thresholds reviewed?
#6
Personal guarantees are required from all principals, with spousal guarantees potentially required at the franchisor's discretion. Under what circumstances would the franchisor require spousal guarantees, and can these requirements be waived or modified?
#7
Late payments incur a 10% late charge plus 2% per annum interest. What is the grace period before late charges apply, and are there any circumstances under which these penalties can be waived or reduced?
#8
The system has only 1 total litigation case on record. Can you provide details about the nature of this case, when it occurred, and how it was resolved?
#9
Territory exclusivity is guaranteed. What specific protections exist against franchisor encroachment, and what remedies are available if the franchisor violates territorial exclusivity?
#10
The non-compete clause specifies 2 years but lists N/A for miles. Does this mean there is no geographic radius restriction on the non-compete, and can franchisees operate in the same geographic area after the 2-year period?
#11
With a 10-year initial term and 2 five-year renewal options, what are the renewal fee requirements (noted as $12,475)? Are renewal terms renegotiated or do they remain identical to the original agreement?
#12
The turnover data shows a net growth of only 1 unit over the past year despite a stable 74-unit system. What is the franchisor's growth strategy, and what incentives or support exist for unit expansion?
#13
Your system shows below-average sales performance relative to category peers. What training, marketing support, and operational resources are included in the Support & Training score of 91, and how do these compare to other franchise systems in the cleaning category?
#14
Median sales of $366,688 suggest significant variation in unit performance. What factors most strongly correlate with successful units, and what metrics should prospective franchisees expect in their first 2 years of operation?
#15
The renewal fee of $12,475 represents approximately 25% of the initial franchise fee. Is this fee negotiable, and are there any conditions under which the franchisor may refuse renewal?
#16
What percentage of units in the current 74-unit system have been renewed at least once, and what is the average tenure of current franchisees?
#17