Mr. Electric

Can you provide details on the 2 litigation cases reported, including the parties involved, case outcomes, and whether they involved disputes over territory, fees, or contract enforcement?

The technology fee of $76/month is significantly lower than the typical range for this franchise category ($156.5–$599.0/month). What specific services and systems does this fee cover, and are there plans to increase or modify this fee?

The franchise fee of $42,500 is below the typical range for home services franchises ($45,000–$59,900). Are there any additional costs or requirements not included in this fee that franchisees should budget for upfront?

Unit closures increased substantially from 7 in 2022 to 19 in 2024. Can you break down the reasons for closures in the most recent year and identify any common factors among closed locations?

What is the average tenure of units that closed in 2023 and 2024? Were these primarily new franchisees (within first 2 years) or established units?

Item 19 shows median gross sales of $342,631 and average gross sales of $521,544. What percentage of your current franchisees fall below the median, and what is the bottom quartile performance level?

The termination causes count (12) is notably lower than the typical range (14.0–21.0). Does this indicate fewer contractual bases for termination, or is it reflective of the franchisor's enforcement approach?

Can you explain the difference between 'Closed,' 'Ceased Other,' and 'Transferred' in your unit history data? How are these categories defined operationally?

The non-compete restriction requires 2 years/25 miles post-termination. Has the franchisor enforced this restriction against former franchisees, and are there documented cases or settlements related to non-compete violations?

Renewal conditions require franchisees to sign the 'current agreement' to renew. Does this mean franchisees must accept updated terms and conditions, including any fee increases or operational requirement changes?

The system requires minimum annual gross sales in the top 90% of all franchised businesses. How is this threshold calculated, what happens if a franchisee fails to meet it, and what remedies or support does the franchisor provide?

Personal guarantees are required from all owners with 5% or greater ownership. Are there any circumstances under which this requirement can be waived or modified?

The indemnification clause requires franchisees to indemnify the franchisor for liability claims. Are there any limitations or carve-outs for franchisor negligence or willful misconduct?

You mentioned spouse confidentiality agreements in connection with personal guarantees. What specific information must spouses keep confidential, and what are the consequences for breach?

Late payment fees are $10 per day plus up to 12% annual interest. Has this provision been enforced, and what is the average amount of late fees collected annually?

The territory is 'protected but not exclusive.' What does this mean operationally, and under what circumstances could the franchisor place another unit in or near your territory?

Encroachment protection is listed as 'True,' but the territory is not exclusive. Can you define what specific encroachment protections are included in the franchise agreement?

The transfer fee is $15,000 and renewal fee is $5,000. Are there any circumstances under which these fees could be waived, and what is included in the franchisor's review process for approvals?

Nine units ceased operations for reasons classified as 'other' in 2024. Can you provide specific examples of what 'other' exit reasons include?

The non-renewal rate is 2.4% annually. What is the primary reason franchisees elect not to renew, and how often has the franchisor denied a franchisee's renewal request?