Oxi Fresh Carpet Cleaning

The ad fund rate of 3.0% is above the typical range of 1.0-2.0% for cleaning franchises. How is this ad fund deployed, and what specific marketing initiatives does it support for franchisees?

Financial performance data shows median gross sales of $113,083, substantially below the typical range for cleaning franchises. What factors contribute to this lower sales performance, and how does profitability compare after accounting for typical operating expenses?

The transfer rate of 9.5% is more than double the typical range. Can you provide details on why units are being transferred at this elevated rate—are these driven by franchisee exits, business sales between franchisees, or other factors?

Your initial franchise term is 7 years with no renewal options specified. Why is there no renewal option, and what happens at the end of the 7-year term regarding the ability to continue operating?

The non-compete restriction of 20 miles is narrower than the typical range of 21.25-50.0 miles. How does this narrower restriction protect franchisees from competitive activity in adjacent territories?

Contract Terms score of 51 falls below the typical range of 58.0-70.0. What specific contract provisions score lower, and are there areas where the agreement favors the franchisor over franchisees?

Support & Training score of 74 is slightly below the typical range of 76.0-90.0. What ongoing training and support resources are provided, and how frequently do franchisees receive support after initial training?

Termination rate is 3.7% annually. What are the primary reasons franchisees are being terminated, and how many franchisees have cured defaults versus those terminated without cure opportunity?

Can you clarify the personal guarantee and spouse signature requirements mentioned in the liability/indemnification clause, and what specific obligations spouses are signing for?

The dispute resolution clause requires binding arbitration in Denver, Colorado. Are there any options for disputes to be resolved in a franchisee's home state, and what are the typical costs of arbitration disputes?

With 3.7% annual terminations and 9.5% transfers, what is the actual one-year survival rate for new franchisees, and how does this compare to your original projections?

Can you provide a detailed breakdown of the 18 units closed in 2024 and 27 closed in 2023—were these voluntary closures, terminations, or other circumstances?

Bottom quartile franchisees are reporting only $40,826 in gross sales annually. What support exists for underperforming units, and at what sales level would a franchisee typically be at risk of termination?

Item 19 shows average gross sales of $162,260, but median is only $113,083, indicating significant disparity. What explains this wide gap, and what percentage of franchisees fall below the median?

The termination clause allows 7-10 days for payment defaults and 30 days for other breaches. How frequently are franchisees terminated within these cure periods, and what is the typical timeline from first notice to termination?

Are there any ongoing disputes or litigation cases pending that are not reflected in the publicly available data, and what is the franchisor's litigation history prior to the last 3 years?

The franchise fee is $47,900, but what are the total initial investment costs including equipment, inventory, training, and working capital? How does this compare to your estimated first-year profitability?

Given the narrower non-compete radius of 20 miles versus the typical 21.25-50.0 miles, how does the franchisor prevent encroachment by existing franchisees when selecting new franchise locations?

What happens if a franchisee chooses not to renew after the 7-year term ends? Can they continue operating independently, or are they required to cease operations or transfer their customer base?

Can you explain the rationale for having no renewal options specified in the franchise agreement, and is this standard for all Oxi Fresh franchisees?