Orkin

The franchise fee of $39,000 is notably lower than the typical range for home services franchises ($45,000-$59,900). What is included in the lower fee structure compared to competitors, and what additional costs might franchisees encounter during setup?

Financial Performance score is significantly low at 40/100. Does Orkin provide an Item 19 financial disclosure document, and if not, why? Can you provide historical revenue and profitability data for franchisees?

System Health score of 49/100 falls below the typical range. What specific operational or support metrics contribute to this lower score?

Two litigation cases were initiated against Orkin in the 3-year period. Can you provide details on the nature of these cases, their outcomes, and what actions were taken to prevent similar issues?

Unit count declined by 2 units (-0.4%) in the past year after growing from 495 to 506 units. What caused the contraction, and are there specific regions or demographics experiencing higher closure rates?

Closure data shows 19 units closed in 2022, 4 in 2023, then 12 in 2024—a significant uptick. What factors drove the 2024 increase, and what is the current trend for 2025?

Zero franchisor terminations over 3 years suggests either exceptional franchisee compliance or lenient enforcement. How does Orkin define and enforce performance standards, including the minimum annual net revenue requirement mentioned in the FDD?

The non-compete radius of 10 miles is significantly lower than the typical 25-40 miles. Does this narrower restriction create risk of direct competition in adjacent territories, and how does Orkin manage this?

Monthly technology fees of $140 are below typical but required. What specific technology and services does this fee cover, and are there mandatory upgrades or increases planned?

The mandatory 2% advertising fund requirement is in addition to royalties. Can you provide transparency on how these funds are allocated, and do franchisees have any input on marketing strategy?

What specific circumstances trigger the minimum annual net revenue requirement that could result in territory reduction? How is this enforced, and what percentage of franchisees have faced territory reductions?

All disputes must be resolved through binding arbitration in Atlanta. Has this arbitration requirement been challenged, and what is the average cost and duration of arbitration cases?

The FDD requires spouses to sign documents making them personally liable for all financial obligations. Can you clarify the extent of spousal liability and whether this applies to community property states differently?

Transfer fees are $15,000. Are there restrictions on who can purchase a transferred unit, and does Orkin have right of first refusal?

With a 10-year initial term and 1 five-year renewal option, what criteria determine renewal eligibility? Are there performance metrics that must be met to secure the renewal option?

Post-term non-compete restricts pest control services within the territory and 10-mile radius for 2 years. How aggressively does Orkin enforce this, and have former franchisees challenged it?

The Turnover & System Data shows 0.0% termination rate and 0.0% non-renewal rate. Does this mean no franchisees were terminated for cause, or does Orkin allow all contracts to simply expire without renewal decisions?

What ongoing support and training does Orkin provide throughout the franchise term, especially given the 10-year initial commitment?

Can you provide a breakdown of the 12 units that closed in 2024 by region, unit age, and stated reason for closure to assess whether closures are concentrated or systemic?