MI-BOX

The franchise fee of $134,000 is significantly higher than the typical range of $45,000–$59,900 for home services franchises. What specific services, training, or support justify this premium pricing compared to competitors?

Your franchise has grown from 1 unit 3 years ago to 8 units today at a 100% compound annual growth rate. What explains this exceptional growth rate, and is it primarily driven by new franchise sales or organic expansion?

With zero unit closures, terminations, and transfers over 3 years, the turnover rate stands at 0.0% compared to the typical range of 1.1–12.4% annually. How do you explain this perfect retention rate, and has any franchisee ever exited the system?

There is 1 pending litigation case. Can you provide details about the nature of this case, the parties involved, and the expected timeline for resolution?

You were both plaintiff in 1 case and defendant in 1 case over the past 3 years. What were the outcomes of these cases, and do they relate to franchise agreement enforcement or operational issues?

The total potential contract term of 30 years (10-year initial plus 2 x 10-year renewals) exceeds the typical range of 15–20 years. What is the rationale for extending the potential term this long, and what conditions must be met to renew?

Renewal requires payment of 10% of the then-current initial franchise fee. If the franchise fee increases to $200,000 by the renewal date, would the renewal fee be $20,000? How have renewal fees historically increased?

The non-compete clause is 2 years within 25 miles post-termination. If a franchisee is terminated, are there any circumstances under which this restriction is waived or reduced?

Territory is described as protected with encroachment safeguards, but not exclusive. Can you define exactly what 'protected' means and under what circumstances the franchisor might add another franchisee to the same territory?

Personal guarantees are required from all stockholders, members, and managers, and spouses must also guarantee performance. What recourse does the franchisor have against a spouse's personal assets if the franchise fails?

With only 8 total units currently, how does the franchisor support franchisees in areas with very small populations or rural territories? What is the minimum population threshold for a viable territory?

Item 19 financial performance data shows average gross sales of $536,976, but what is the range of profitability after accounting for franchisor fees, royalties, technology fees, and required ad fund contributions?

Bottom quartile units are reporting $447,661 in gross sales. Are these units profitable, and what is the average payback period for the $134,000 franchise fee?

The system shows zero non-renewals. If a franchisee chooses not to renew after 10 years, what happens to their territory and client base, and does the franchisor have first refusal rights?

Technology fee is $250 per month or annually? What services or software does this fee cover, and can it increase during the franchise term?

Ad fund rate is 2.0%. How is this fund managed, who controls spending decisions, and can franchisees request an accounting of how their contributions are used?

Given the rapid growth from 3 units to 8 units in just 1 year, what is the franchisor's growth strategy for the next 3–5 years, and how many new franchises are you planning to sell?

What support and training do new franchisees receive, and is this included in the franchise fee or subject to additional costs?

Are there any disputes between franchisees and the franchisor that have not yet resulted in formal litigation, and if so, what issues are being negotiated?