Maid Right

The franchisor has been defendant in 6 cases and plaintiff in 4 additional cases over the past 3 years. Can you provide details on the nature of these 10 cases, their current status, and the outcomes of any resolved cases?

Four litigation cases are currently pending. What are the specific claims in these cases, what is the timeline for resolution, and could any adverse outcomes impact franchise operations or fees?

Your royalty rate of 15.0% is significantly higher than the typical 6.0%-8.13% range for cleaning and restoration franchises. How does this higher rate compare to your primary competitors, and what additional support or services justify this premium?

The transfer fee of 1,500 is substantially lower than the typical 5,500-15,000 range. Are there additional hidden costs associated with transfers, or does this low fee reflect a policy designed to encourage unit transfers?

With a total potential contract term of 30 years (initial 10 years plus two 10-year renewals), what conditions must be met to qualify for each renewal option, and are renewal fees guaranteed to remain at current levels?

Territory is non-exclusive with no encroachment protection. How does the franchisor prevent new franchisees from being placed in areas that would directly compete with existing franchisees?

The non-compete clause restricts franchisees for only 1 year after exit. Has this short restriction period resulted in former franchisees competing directly in the same markets, and why is it shorter than the typical 2-year restriction?

Your unit count remained at 21 for the past year. What is your annual unit development plan, and what percentage of franchisees are typically expected to remain active through each renewal period?

Despite zero terminations in the 3-year period, the agreement lists 18 non-curable termination events. Can you provide examples of these non-curable events and circumstances where the franchisor has invoked them?

The termination clause allows only 10 days to cure monetary defaults and 30 days for non-monetary defaults. How frequently are Notice of Default letters issued, and what percentage result in actual termination?

All disputes require binding arbitration with no appeal rights in the franchisor's home county. What is the average cost and duration of arbitration for franchise disputes, and are there any examples of disputes that franchisees felt were resolved unfairly?

Financial Performance score is 40/100, which falls below the typical range. Why is there no Item 19 financial performance disclosure, and what financial metrics can you provide regarding average unit volumes, profitability, and success rates?

Support & Training score is 72/100, below the typical 76.0-90.0 range. What specific training is provided before opening, and how much ongoing support is included in the royalty fee versus what requires additional payment?

The Ongoing Fees score of 48/100 is significantly below the typical 62.0. Beyond the 15.0% royalty, what other recurring fees do franchisees pay, and how often do these additional fees increase?

Given the elevated litigation activity, are there any litigation disclosures or settlements in the Franchise Disclosure Document that relate to franchisee disputes, and if so, what were the primary issues?

The system has a 4.8% transfer rate with only one transfer in the past year. Are these transfers initiated by franchisees seeking to exit, or are they strategically managed by the franchisor?

With a renewal transfer fee identical to the initial transfer fee (1,500), how many franchisees typically renew their contracts versus seek transfers or allow their agreements to lapse?

The Territory score of 50/100 falls significantly below the typical 65.0-90.0 range. How does the franchisor justify non-exclusive territories, and what specific protections prevent encroachment?

Are there any pending or threatened regulatory investigations against the franchisor related to disclosure practices, fee structures, or franchisee disputes?

Can you provide references from at least 5 current franchisees who have been in the system for more than 5 years, and disclosure of how many franchisees from each of the past 5 years are still active?