Paramount Tax & Accounting

The royalty rate of 10% is significantly below the 14-20% typical for tax franchises—how is this competitively positioned, and are there volume-based increases to royalties at higher revenue levels?

The franchise fee of $40,000 exceeds typical tax franchise fees by $5,000-$25,000—what additional services, training, or support justify this premium pricing?

Can you explain the single litigation case filed against the franchisor in the past 3 years—what was the nature of the claim and its outcome or current status?

Your system grew 21.4% over three years compared to a typical range of -2.4-5.9%—what is driving this unusually rapid expansion, and is this growth sustainable?

The 3.2% three-year turnover rate is substantially lower than the typical 4.43-19.63% range—does this reflect strong franchisee satisfaction, or are there contractual barriers preventing exits?

Three units closed and three were terminated in 2024—were any of these terminations due to performance issues, and what are the primary reasons franchisees are exiting the system?

The 20-year initial term is double the typical 5-10 year range for tax franchises—what is the rationale for this extended commitment, and how difficult is it for franchisees to exit early?

With only 13 termination causes compared to the typical 15-23, which specific performance standards or obligations are notably absent from your termination clause?

The contract requires binding arbitration in Salt Lake County, Utah, and waives class action rights—what specific disputes have occurred under this arbitration clause, and what were the outcomes?

Can you provide details on the transfer fee of $20,000 and whether this is applied to all ownership transfers, including transfers back to the franchisor?

Item 19 shows median gross sales of $204,162 but average gross sales of $497,814—what percentage of franchisees fall below the median, and what factors explain the wide variance?

How many of the current 93 units are company-owned versus franchisee-operated, and what is the franchisor's internal growth strategy?

The 5.5% transfer rate exceeds the typical 0.45-5.35% range—are these transfers primarily to new franchisees or back to the franchisor, and what are the reasons?

What training, ongoing support, and technology systems are included in the annual $300 technology fee, and are there additional technology costs not listed?

Are there any seasonal fluctuations in franchisee revenue, and how do you account for this in royalty calculations or franchisee financial projections?

Can you clarify which specific termination causes were removed from your contract compared to standard tax franchise agreements, and why?

What happens to non-renewed franchisees at the end of their term—are they offered renewal options, and under what conditions might renewal be denied?

The 30-year total potential term is longer than most franchises—are there any circumstances where the franchisor can shorten this term or decline renewal?