Mr. Rooter

The technology fee of $76 monthly is significantly lower than typical for home service franchises. What specific services and systems are included in this fee, and how does it compare to industry-standard plumbing franchise technology platforms?

Your franchise fee of $42,500 is below the typical range for this category. What is included in this lower initial investment, and are there additional equipment or startup costs not reflected in this figure?

Gross sales significantly exceed typical benchmarks (median $1.27M vs. typical $287K-$1M). What percentage of franchisees achieve these performance levels, and what is the performance distribution across your current 232 units?

The transfer rate of 6.9% exceeds typical ranges, with 16 transfers occurring in 2024 alone. Are these transfers primarily to existing operators, new franchisees, or family members? What is driving the increase in transfers?

Your non-compete clause restricts activity for 2 years within 25 miles post-exit. How is this enforced, and have there been disputes or litigation related to non-compete violations in the past 5 years?

Termination causes count of 12 is below the typical range of 14-21. Which specific breaches or performance failures trigger termination, and how much flexibility exists in enforcement?

The franchise has 2 litigation cases over 3 years with one against the franchisor. Can you provide details on the nature of the case against the franchisor and whether it was resolved, and the status of any ongoing disputes?

Your Item 19 financial performance data shows strong averages, but what is the median income (net profit) after accounting for royalties, advertising, and technology fees? How many units operate profitably?

Territory is marked as protected but not exclusive. What specific encroachment protections exist, and has the franchisor ever authorized competing units or related brands within protected territories?

Exit rate of 3.5% and termination rate of 1.7% are low compared to some franchises. What are the primary reasons for the 8-10 unit closures per year, and are any related to franchisor-driven consolidation or refranchising?

With 6.9% annual transfer rate and growing transfers in recent years, what are the key barriers to unit sale? Can franchisees easily sell to qualified buyers, or does the franchisor have approval/right of first refusal rights?

The franchise requires personal guarantees from all owners with 5% or more ownership. How is this enforced upon renewal, and can family business succession structures be accommodated?

Operational control allows single-source approved suppliers for certain products. Can you provide a list of products available only from franchisor-approved vendors and the typical cost impact on unit operations?

Renewal requires signing current franchise agreement terms. How often have renewal terms changed materially in the past 10 years, and have any existing franchisees renewed at different terms than those currently offered?

The $1,000,000 minimum commercial general liability insurance requirement is specified. Are there additional insurance or bonding requirements, and have premium costs increased substantially in recent years?

System Health score of 76 exceeds typical ranges. What metrics define this score, and does it reflect growth from existing unit expansion or from new unit sales?

With net growth of 14 units in the past year, how many are entirely new franchises versus reacquisitions of failed units or conversions from other brands?

Renewal fee is $5,000 for a 10-year term. Are there any other renewal-related costs such as training, technology upgrades, or facility requirements that franchisees must fund?