MaidThis

Can you provide detailed Item 19 financial performance data broken down by franchisee, including gross sales, operating expenses, and net profit ranges? The median sales of $139,090 appears substantially lower than average sales of $464,508—what explains this wide variance?

What is the justification for the transfer fee of $29,250, which is nearly double the typical range for cleaning franchises? Are there circumstances under which this fee is reduced or waived?

The franchise has experienced 114% unit growth in one year (7 to 15 units). Can you provide details on these new franchisees—are they newly opened, converted from other systems, or multi-unit operators? What is their average time in operation?

Given the zero recorded exit rate across all tracked years, can you explain the criteria and process for tracking unit closures, terminations, and transfers? Are these metrics verified independently?

The non-compete clause is 2 years/20 miles, below the typical 21.25-50 mile range for this category. How aggressively does the franchisor enforce the non-compete, and have there been disputes over this narrower radius?

The contract includes 9 renewal conditions compared to a typical 5-8 range. What are these specific conditions, and what percentage of franchisees fail to meet them during renewal cycles?

As a new or early-stage system (4 units in 2021, 15 units currently), how long have franchisees been operating on average? Have any franchisees completed a full 5-year initial term yet?

The franchisor requires personal guarantees from all shareholders and their spouses. What recourse do franchisees have if they encounter financial difficulties? Has the franchisor enforced personal guarantees against any franchisees?

Can you provide references from franchisees currently operating at the lower ($139,090) and higher ($464,508+) revenue ranges to understand what drives performance variability?

What support and training are provided to achieve profitability given the median gross sales of $139,090? Are there documented benchmarks for when a franchisee should expect to break even?

Of the 15 current units, how many have completed their initial 5-year term? How many franchisees have exercised renewal options versus exited the system?

The territory is exclusive with encroachment protection. What specific protections exist if the franchisor modifies territory boundaries or adds franchisees nearby? Have there been any encroachment disputes?

What marketing and advertising support does the $200 monthly technology fee provide? Is this fee subject to increase, and on what timeline?

Can you clarify the $5,000 renewal fee structure? Is this a one-time fee per renewal option, or does it apply to each of the 3 renewal periods? Are there any conditions where renewal is denied?

Given the rapid growth trajectory and zero reported litigation, have there been any informal disputes, complaints, or issues resolved outside of formal litigation that prospective franchisees should be aware of?

What happens to franchisee territory and customer base if a franchisee chooses not to renew after the initial 5-year term or after a renewal period?

The franchise shows strong investment and risk factor scores. Can you detail what metrics contributed to these scores and whether they are based on actual franchisee performance data or franchisor projections?

What is the typical sales ramp-up timeline for new franchisees? How long does it take to reach the average sales figure of $464,508 from a $139,090 baseline?

Are there any geographic or demographic factors that explain the significant variation in franchisee sales performance? Which markets are performing above and below average?

If a franchisee wishes to transfer their unit, can they identify and negotiate directly with the buyer, or must the franchisor approve the buyer? What is the approval timeline and approval rate for transfers?