The franchise fee of $63,750 exceeds the typical range for home services franchises—what justifies this premium pricing compared to competitors?
#1
Your royalty rate of 5.0% is below the typical 6.0-7.0% range; does this lower rate reflect reduced support services or a different business model compared to industry peers?
#2
Can you provide specific details on the 2 cases where the franchisor served as plaintiff? What were the claims, outcomes, and any impact on franchise operations?
#3
The system has declined from 325 to 310 units over the past year (-4.6%). What is the franchisor's explanation for this contraction and what growth strategies are in place?
#4
Reported gross sales of $286,000 median and $295,000 average are substantially lower than typical home services franchises ($286,628-$1,008,179). Are these figures accurate and what is the sales trend trajectory?
#5
In 2024, 24 units closed while only 8 were terminated by the franchisor and 19 transferred—what are the primary reasons franchisees are voluntarily exiting the system?
#6
The termination causes count of 12 is below the typical range of 14-21. Does this indicate more lenient enforcement of franchise agreement terms, or are certain violation categories not listed?
#7
How does the $274 monthly technology fee compare to competitors, and what specific technology services and support does this fund?
#8
The non-compete clause requires 2 years within a 25-mile radius post-termination. Has this restriction been enforced, and have there been disputes regarding its scope or enforceability?
#9
What is the current status of the 1 pending litigation case, and how might its outcome affect franchisees?
#10
Can you explain the spike in 'ceased other' exits from 5 units (2022-2023) to 15 units (2024)? What circumstances lead to this closure category?
#11
Territory is protected but not exclusive—what specific encroachment protections exist, and has the franchisor granted additional franchises within existing territories?
#12
The support & training score is 100/100, the highest in the category. What specific training and ongoing support differentiates Mr. Appliance from competitors?
#13
What is the average profitability and net income for franchisees at the median sales level of $286,000 after all fees and expenses?
#14
The 3-year CAGR is -0.5% versus a typical 0-23.25% range. What specific initiatives is the franchisor implementing to reverse this negative growth trend?
#15
Are there restrictions on the types of appliance services or brands franchisees can offer beyond the 5 categories with franchisor approval rights?
#16
The franchise agreement includes personal guarantees and spouse guarantees—are there any exceptions or alternatives to this indemnification requirement?
#17
How many of the 24 unit closures in 2024 were due to franchisee inability to meet financial obligations versus other factors like retirement or relocation?
#18
What percentage of franchisees achieve the median gross sales figure of $286,000, and what percentage fall below or above this level?
#19