NextHome

The franchise fee of $10,000 is significantly below the typical range of $20,000-$40,000 for real estate service franchises. What specific support, training, or services justify the lower entry cost compared to competitors?

Territory is non-exclusive with no encroachment protection. How does the franchisor manage placement of new franchisees within existing franchisee territories, and what recourse do franchisees have if territorial overlap impacts their revenue?

What is causing the consistent high closure rate (63 units closed in 2023 and again in 2025)? Are these primarily franchisees exiting voluntarily or is the franchisor terminating underperforming locations?

The non-renewal rate is 4.1% annually. What are the primary reasons franchisees choose not to renew, and what percentage fail to meet the 6 renewal conditions outlined in Section 5.2.3?

Can you provide specifics on the 2 pending and resolved litigation cases from the past 3 years, including the nature of disputes and any settlements or judgments that might affect franchise operations?

The Technology Fee is $80 (monthly, annually, or per transaction?). What specific technology systems and support does this fee cover, and can you provide a detailed breakdown of all technology services provided?

The franchise agreement requires remodeling and modernization to renew. What are the specific requirements and estimated costs, and are these requirements waived or adjusted for any franchisee circumstances?

Given that 18 non-curable defaults are listed in the agreement versus 8 curable defaults, can you provide examples of what constitutes a non-curable default and the typical timeline from notice to termination?

How many franchisees have been terminated for cause in the past 3 years versus those who ceased operations voluntarily? What is the breakdown of termination reasons?

The agreement requires joint and several guarantee from all owners with 5% or greater ownership. How has this liability structure been enforced in past disputes, and have there been cases where personal assets of owners were pursued?

What are the specific 6 conditions in Section 5.2.3 that franchisees must meet to qualify for renewal, and what percentage of franchisees fail to meet these conditions in practice?

With a 1-year non-compete and no mileage restriction, could a franchisee operate a competing real estate brokerage immediately after leaving, as long as they move to a different location?

The system lost 21 units in the past year (3.5% decline) despite overall growth in the real estate services sector. What market factors or operational issues are driving the net unit decline?

Can you provide 2-3 years of financial performance data showing median/average gross revenue for franchisees, even if Item 19 is not formally prepared? What are franchisees actually earning?

Are there any disputes regarding the $5,000 renewal fee or the requirement to remodel for renewal? Have any franchisees challenged these conditions or sought fee reductions?

How many franchisees have been subject to the 5-20 day cure periods for curable defaults? What is the rate of successful cure versus termination after notice?

What support and training justify the above-average Support & Training score of 80/100? Can you detail the ongoing coaching, technology training, and operational support provided after launch?

Given that the Territory score of 35/100 is well below the typical range of 50.0-75.0, what specific territorial protections or competitive disadvantages should a new franchisee expect?