What specific circumstances led to the 29 unit closures in 2020, and were these primarily financial failures or other operational issues?
#1
The Franchise Fee of $300,000 is approximately 6 times higher than the typical automotive franchise fee. What specific assets, equipment, training, or support justify this premium fee structure?
#2
Your Technology Fee of $12/month is significantly below the typical range of $156-$493/month for automotive franchises. Does this fee cover all software, tools, and digital platform access, or are there additional technology-related costs not captured?
#3
With a 10-year total potential term (half the typical 15-30 years), what is your strategy for franchisee retention and what renewal terms are available after the initial 10 years?
#4
The Transfer Fee of $25,000 is nearly double the typical range. Can you provide a detailed breakdown of what services and costs are included in this fee?
#5
Your Support & Training score is 73/100, below the typical 80-100 range for automotive franchises. What specific training and ongoing support does the franchise provide, and how does it compare to competitors?
#6
Why does the system show a 0.0% transfer rate when the typical range is 0.6-5.6%? Does this indicate restrictions on franchise transfers or simply a lack of transfer activity?
#7
The Non-Compete clause extends 100 miles from the franchisee's location—significantly broader than the typical 5-25 mile range. What is the rationale for this expanded geographic restriction?
#8
Can you provide details on the 1 franchisor-initiated litigation case, including the nature of the dispute, outcomes, and any lessons learned?
#9
With only 7 termination causes listed (compared to the typical 13-18), which specific default scenarios are excluded from this count, and what is the franchisor's process for addressing franchisee non-compliance?
#10
The Investment Costs score of 5/100 is exceptionally low. What is the total out-of-pocket investment required beyond the $300,000 franchise fee, and what does this include?
#11
How many of the 102 current units are operational versus in development or pre-launch stages, and what is the average time to profitability?
#12
What percentage of the 51 units that closed in 2020 were owned by franchisees still active in the system, and did the franchisor provide any financial assistance or restructuring options?
#13
The territory is exclusive with encroachment protection. Can you define what constitutes a breach of this exclusivity and what remedies are available to franchisees?
#14
Is the $10,000 renewal fee the only cost to renew, or are there additional fees, training requirements, or system upgrades required at renewal?
#15
Given the lack of Item 19 financial performance disclosure, can you provide average gross revenue, average operating costs, and average net profit for units that have been operational for at least 2 years?
#16
The dispute resolution clause mandates binding arbitration in Texas administered by JAMS with no appeal rights. How will this arbitration fee structure affect franchisees in dispute, and are there circumstances where mediation or litigation in the franchisee's home state is available?
#17
What specific benchmarks or KPIs does the franchisor use to determine when a unit is underperforming and subject to termination?
#18