MISTER SPARKY

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?