Outdoor Lighting Perspectives

The transfer rate of 11.3% is significantly higher than the typical range of 0.0-6.35% for home services franchises. What is driving the elevated number of unit transfers, and are most transfers occurring due to owner retirement, relocation, or financial underperformance?

The initial term of 7 years is shorter than the typical 10-year term for this category. What is the rationale for the shorter initial commitment, and how does this affect franchisee planning and ROI timelines?

The non-compete radius of 10 miles is substantially narrower than the typical 25.0-40.0 mile range. How does this narrower protection affect your ability to prevent market saturation and protect your territory if you decide not to renew?

Renewal requires satisfaction of 11 specified conditions, which exceeds the typical 6.0-9.0 range. Can you provide the complete list of renewal conditions, and are any of them subjectively determined at the franchisor's discretion?

The total potential term of 12 years is significantly below the typical 15.0-20.0 year range. How does this shorter overall term affect your long-term investment horizon, particularly given the 7-year initial term?

Can you clarify what circumstances trigger the 20 non-curable defaults that allow immediate termination without a cure period, and provide specific examples of conduct that would result in immediate termination?

Among the 7 curable defaults, which ones have 0-day cure periods (immediate cure requirement), and how does this differ across the other cure periods of up to 30 days?

The franchise agreement requires personal guarantees from all individuals owning 5% or greater of the franchisee entity, and spouses must also sign. Can you provide the exact language of this guarantee and clarify what spouse liability is triggered if guarantor obligations are breached?

The renewal fee equals 10% of the then-current franchise fee. If the franchise fee increases between now and year 7, will my renewal fee be based on today's fee or the increased future fee?

Given that the franchisor has sole and absolute discretion over renewal approval, what specific franchisee performance metrics or benchmarks guide renewal decisions, and how frequently are renewal requests denied?

What percentage of franchisees who applied for renewal in the past 3 years were approved versus denied, and what were the primary reasons for any denials?

The median gross sales reported ($525,654) versus average ($770,468) shows significant variation. What is the performance range across your units, and what percentage of franchisees fall below the median?

How many franchisees reported the Item 19 financial data, and does this represent a significant portion of your system or a limited sample that may not be representative?

The system added 6 net units in the past year despite 4 closures and 2 terminations. Can you provide the specific reasons why 2 franchisees were terminated in 2025?

Can you explain the increasing transfer activity trend (2 in 2023, 10 in 2024, 16 in 2025)? Are these transfers reflecting strong franchisee success (wanting to expand), or are they reflecting franchisees exiting through transfers to avoid closure?

Territory protection includes encroachment safeguards but is not exclusive. Can you clarify what specific protections exist, whether the franchisor can open company-owned locations or sell to other franchisees in my defined territory?

What is included in the $475 annual technology fee, and how frequently does this fee increase year-over-year?

The transfer fee is $10,000. Does this fee apply only when I transfer my franchise to a third party, or are there additional transfer-related costs I should expect?

Can you provide the complete franchise disclosure document (FDD) and a copy of the actual franchise agreement so I can have an attorney review the specific language regarding the 20 non-curable defaults, cross-default provisions, and personal guarantee requirements?

With no reported litigation in 3 years, have there been any informal disputes, mediation attempts, or settlement agreements with franchisees that may not appear in formal litigation records?