Office Evolution

The monthly technology fee of $2,000 is approximately 4-20 times higher than typical for this franchise category. What specific technology services and support does this fee cover, and how is it justified relative to competitors?

The transfer fee of $35,000 is nearly double the typical range for business services franchises. What does this fee include, and is it negotiable or fixed?

Your initial contract term is 35 years with a total potential term of 50 years—substantially longer than the typical 5-10 year initial term. What is the rationale for such an extended initial commitment, and what happens if market conditions change significantly during this period?

The non-compete restriction is limited to 2 years and 5 miles, which is narrower than typical (typically 10-50 miles). How does this limited restriction protect the franchisor and other franchisees from direct competition?

Territory is protected but not exclusive. Can the franchisor open competing Office Evolution locations within my protected territory or nearby, and under what circumstances?

Can you provide specific examples of the 4 terminations that occurred in 2023 and 2024? What were the primary reasons for franchisor-initiated terminations?

The ad fund rate of 3.0% is above typical. How are these funds allocated, and can franchisees see detailed accounting of ad fund spending quarterly or annually?

You require franchisees to purchase from 6 approved supplier categories. Can you provide the complete list of approved suppliers and explain how pricing and product selection are determined?

Personal guarantees are required from all owners covering all losses, expenses, liability, taxes, and damages. Are there any circumstances where this personal guarantee could be limited or capped?

The franchisor maintains operational control over 6 product/supply categories. Can the franchisor change suppliers or pricing terms unilaterally, and if so, what notice period applies?

With zero litigation cases in your history, has the franchisor engaged in any disputes that were resolved outside of court, arbitration, or mediation proceedings?

The system currently has 84 units compared to 73 three years ago. What percentage of this growth came from new franchisees versus acquisitions or conversions of existing businesses?

Median gross sales are $580,757. What percentage of franchisees achieve this level, and what is the range (25th to 75th percentile) of actual gross sales?

The renewal fee is $2,500. Are there any restrictions on renewing, or does the franchisor have the right to decline renewal or substantially increase fees upon renewal?

Given the extended 35-year initial term, what is your historical renewal rate, and have franchisees expressed concerns about the length of the commitment or difficulty obtaining financing for such long-term agreements?

You mention approved suppliers for 6 categories—do you receive rebates, volume discounts, or other compensation from these suppliers, and if so, how is this disclosed to franchisees?

What training and ongoing support are provided to justify the $2,000 monthly technology fee, and how does this compare to competitors' offerings?

The non-renewal rate is 0.0%. Does this indicate that all franchisees who complete their initial 35-year term choose to renew, or does it reflect limited historical data on exiting franchisees?

Can you provide the Item 19 financial performance statement showing the number of franchisees reporting, performance by region, and profitability metrics beyond gross sales?