The franchise fee of $33,000 is notably lower than the typical range of $45,000-$59,900 for home services franchises. What is included in this lower franchise fee, and are there additional costs not captured in the disclosed fee structure?
#1
Technology fees at $100 monthly are below the typical range of $156.50-$599.00. What specific technology services and support are provided, and could fees increase in future years?
#2
You have 3 total litigation cases on record, exceeding the typical range of 0-2 cases. Can you provide details about the nature of these cases, outcomes, and what remediation measures were implemented?
#3
There is 1 pending litigation case. What is the status and nature of this case, and how might it affect franchise operations or franchisor obligations?
#4
The contract lists 25 termination causes, significantly above the typical 14-21 for this category. Are all 25 causes considered equally serious, and which are non-curable defaults resulting in immediate termination?
#5
Renewal conditions include 11 specified requirements, above the typical 6-9. What are the specific remodeling, refurbishing, and re-equipment requirements for renewal, and what are typical costs?
#6
The non-compete clause restricts competition for 2 years within 40 miles and any zip codes where the franchised business operated. How broadly has this been interpreted in disputes, and what zip codes are typically included?
#7
You require mandatory arbitration at JAMS in Columbia, Maryland. What is the typical cost of arbitration, and are there limitations on discovery or appeals available to franchisees?
#8
Personal guarantees are required from all owners with 5% or greater equity. If a franchisee transfers their unit, are personal guarantees released for the new owner, and what happens if a spouse won't sign the acknowledgment?
#9
Starting in year 3, franchisees must achieve minimum annual gross revenue of $300,000. What happens if a franchisee falls short of this target, and are there penalties, remediation options, or termination triggers?
#10
Average gross sales of $1,284,907 exceed typical ranges, but median sales are $580,809—a significant gap. What percentage of units achieve the $300,000 minimum revenue requirement, and what is the distribution of underperforming units?
#11
Top quartile sales of $3,537,392 significantly exceed typical ranges. What are the key variables (location, owner experience, market conditions) that distinguish top performers from median performers?
#12
The system grew 26.5% in the past year while maintaining low termination rates (0.5%). Is this growth primarily from new franchise sales, and what is your target for total units in the next 3-5 years?
#13
6 units closed in 2023 but only 3 in 2024. What caused the closures, and were any due to insufficient revenue or inability to meet the $300,000 minimum requirement?
#14
You have encroachment protection but territory is not exclusive. How do you define and enforce encroachment protection, and has there been litigation over encroachment disputes?
#15
The franchisor initiated 1 litigation case as plaintiff. What was the nature of this case, and was it related to franchise agreement violations or other disputes?
#16
Supplier selection is controlled by the franchisor with 5 types of restrictions. Can franchisees source products from alternative suppliers if costs are lower, and what are the approved supplier options?
#17
What support and training are provided beyond the initial training, and how is ongoing support structured given the Support & Training score of 78 falls below the typical range of 79-90?
#18
Late payments accrue interest at 12% annually or the maximum rate permitted by law. What other financial penalties exist for non-compliance with franchise agreement terms?
#19
The renewal fee is $5,000 for a 10-year renewal term. Are there any other fees or costs associated with renewal beyond the renewal fee itself?
#20