MilliCare Floor & Textile Care

The franchise system declined by 1 unit over the past year after growing to 60 units in 2023. What specific factors contributed to this reversal in growth trajectory, and what is the franchisor's plan to return to growth?

Median gross sales of $240,039 are significantly below the typical range for cleaning franchises. What percentage of franchisees achieve the median sales figure, and what range do top-performing units achieve?

Average gross sales of $457,757 fall below the typical range for your category. How much of this variance is attributable to unit size, geography, or service mix differences among franchisees?

There is 1 pending litigation case against the franchisor. What is the nature of this case, what stage is it in, and could its outcome affect franchise operations or costs?

What specific changes or improvements does the franchisor plan to implement to reverse the recent net unit decline and return the system to growth?

The total potential contract term of 30 years exceeds the typical range of 10-20 years. What are the renewal conditions at year 10 and year 20, and are there any guarantees that renewals will be granted?

The termination rate is 1.7% annually. What are the primary reasons franchisees are being terminated, and what specific performance or compliance issues typically trigger termination?

Can you provide a detailed breakdown of the 4 closures in 2022, 2 closures in 2023, and 2 closures in 2024? Were these primarily franchisor-initiated terminations, voluntary closures, or business failures?

The franchisor controls pricing and requires purchases from approved suppliers only. How much pricing flexibility do franchisees have to compete in their local markets, and can they negotiate supplier agreements?

What are the specific criteria and process for territory assignment, and how does the franchisor handle encroachment requests or disputes in densely populated areas?

The franchise fee of $49,000 combined with a technology fee of $499 and required initial inventory/equipment costs represents a significant upfront investment. What is the total estimated startup cost to open a MilliCare franchise?

How many franchisees have chosen not to renew at the end of their initial 10-year term, and what are their stated reasons for non-renewal?

The post-term non-compete restricts franchisees for 2 years within 25 miles of their territory. How is 'territory' defined for non-compete purposes if the franchisee's service area extends beyond the initial territory boundaries?

All disputes require binding arbitration with mandatory mediation only at the franchisor's discretion. What is the average cost and timeframe for franchisees in disputes with the franchisor to resolve through arbitration?

Personal guarantees are required from all owners, including spouses. If a franchise fails, what recourse do franchisees have against personal assets, and are there any circumstances where the guarantees can be waived?

Item 19 financial performance data is disclosed. How many units are included in the financial statement, what years are covered, and what percentage of current franchisees meet or exceed the median sales figures presented?

What support and training does the franchisor provide to help franchisees achieve sales comparable to or above the median of $240,039, given that this figure is below the category typical range?

The transfer fee is $15,000. Does this fee apply when transferring ownership within a family, and are there any circumstances under which it can be waived or reduced?

Renewal fee is $5,000 for a 10-year renewal. Are there any other renewal-related costs such as updated training, system upgrades, or rebranding expenses?

What is the franchisor's policy on territory modifications or adjustments, and can the franchisor assign additional service areas to underperforming units to help them reach profitability?