Can the franchisor clarify what factors led to the 2 unit closures in 2024, and were these closures initiated by franchisees or due to performance issues identified by the franchisor?
#1
The royalty rate of 10% is significantly higher than the typical 6-7% for home services franchises. What specific services or support justify this above-average royalty structure?
#2
Given the technology fee of only $75/month (well below the typical $156.5-$599.0 range), what technology platforms and tools are included, and are there any additional technology costs not reflected in the stated fee?
#3
Average gross sales of $370,479 are below the typical range for this category. Can the franchisor provide Item 19 sales data broken down by franchisee tenure, territory size, or other relevant factors?
#4
The system doubled in size (7 to 15 units) in one year while experiencing unit closures. How many of the new 8 units were opened by new franchisees versus existing franchisees expanding their operations?
#5
The non-compete radius of 50 miles exceeds the typical 25-40 mile range. How is this 50-mile radius measured, and has the franchisor enforced this provision against former franchisees?
#6
The contract includes only 10 termination causes compared to the typical 14-21. Which typical termination scenarios are excluded, and does this provide franchisees greater operational flexibility?
#7
Can the franchisor provide details on the personal guarantee requirements mentioned in the franchise agreement, including whether non-owner spouses must sign, and how this impacts franchisee liability?
#8
The franchise agreement requires exclusive purchase of MosquitoNix systems from affiliate MQX Products. What is the markup or profit margin on these products, and are there any competitive alternatives franchisees can evaluate?
#9
How many of the current 15 units are in their first year of operation, second year, or beyond, and what is the actual closure rate among units that have been operating for 2+ years?
#10
Can the franchisor provide case studies or contact information for franchisees who closed their units in 2024 to understand the specific challenges they faced?
#11
The support and training score of 76 is below the typical range of 79.0-90.0. What specific training and ongoing support programs are included, and are there additional costs for advanced training?
#12
Has the franchisor experienced any disputes with franchisees over territory encroachment or affiliate system purchases that did not result in formal litigation?
#13
What is the average time from franchise agreement signing to unit opening, and what percentage of new franchisees successfully launch within the projected timeline?
#14
The renewal fee is $10,000, equal to the transfer fee. Are there any performance requirements or conditions that must be met to renew the franchise agreement at the end of the initial 10-year term?
#15
Can the franchisor provide a detailed breakdown of the $49,000 franchise fee, including allocated costs for initial inventory, training, equipment, and working capital?
#16
The 2-year non-compete with a 50-mile radius is more restrictive than typical. If a franchisee exits, what happens if they want to start a competing mosquito control business outside the 50-mile radius during the 2-year period?
#17
Given the significant growth from 7 to 15 units, what is the franchisor's strategy for continued expansion, and are there plans to increase support and training resources proportionally?
#18
Can the franchisor clarify the difference between 'curable' versus 'non-curable' defaults in the agreement, and provide specific examples of each with corresponding cure periods?
#19