The royalty rate of 10% is significantly higher than the typical 6-7% range for home services franchises. How is this higher rate justified, and what additional support or resources does it fund compared to competitors?
#1
Average unit sales of $214,794 are roughly half the typical range for this franchise type. What factors contribute to this lower average, and what is the performance distribution across your franchise units?
#2
Unit closures more than quadrupled in 2024 (24 closures vs. 6 in 2023). What specific circumstances drove these closures, and what percentage were franchisor-initiated terminations versus voluntary exits?
#3
Can you provide details on the single litigation case from the past 3 years where the franchisor was plaintiff? What was the outcome and nature of the dispute?
#4
The system showed net unit decline of 1 unit in the past year. Given growth from 396 to 417 units over 3 years, what is driving the recent plateau and are you projecting unit growth or further decline?
#5
Bottom quartile franchisees report sales of only $15,980, well below the typical range. What support is provided to underperforming units, and what is the typical path for units in this performance bracket?
#6
Your transfer fee of $20,000 exceeds the typical range of $7,500-$15,000. What justifies this premium, and are there circumstances where this fee can be negotiated or waived?
#7
How many of the 24 units closed in 2024 were due to franchisor termination for non-compliance versus franchisee voluntary closure due to business performance?
#8
The median sales of $287,832 significantly exceed the average of $214,794, suggesting high variability in unit performance. What percentage of franchisees achieve above-median sales, and what are the key success factors?
#9
Personal guarantees are required from all 5%+ owners, and the franchisor may require spousal guarantees. Under what circumstances would spousal guarantees be required?
#10
Your operational control clause reserves rights to control suppliers across four categories including products and equipment, with certain items available only from single approved sources. What is the markup range on these single-source items?
#11
With a 2-year, 25-mile non-compete, what specific services are prohibited, and how is compliance monitored post-termination?
#12
Can you provide a detailed breakdown of the 24 terminations in 2024—how many were for non-payment, operational non-compliance, or other causes?
#13
What is the renewal fee of $5,000 used for, and are there any rate adjustments upon renewal for royalties or other ongoing fees?
#14
The franchise fee of $42,500 is below the typical range. Does this lower initial cost correlate with lower startup requirements, or are there significant additional required investments not included in the franchise fee?
#15
Are there any upcoming changes to the royalty structure, technology fees, or other ongoing costs that prospective franchisees should be aware of?
#16
Of the 418 units existing one year ago, how many remain open today, and what was the average tenure of units that closed in 2024?
#17
Your System Health score of 44/100 falls below the typical 50-70 range. What specific operational or compliance issues contribute to this lower score?
#18
The ad fund rate is 2%—how is this fund allocated, and can franchisees see detailed accounting of ad fund spending and ROI metrics?
#19
What training and ongoing support do new franchisees receive to help them achieve median-level sales performance of $287,832?
#20