Preservan

Given the transfer fee of $27,000 is nearly double the typical range for this category, what is the specific rationale for this pricing level, and are there alternative paths to exit a franchise without incurring this fee?

The system has grown 266.7% in the past year from 3 to 11 units. What are the franchisor's expansion targets for the next 2-3 years, and what support systems are in place to maintain quality given this rapid growth?

Average unit sales of $248,128 are roughly 46-53% below the typical range for this category. Is this discrepancy due to franchise maturity (most units being less than 1 year old), geographic markets served, or other factors, and what is the timeframe for new units to reach category averages?

With zero litigation history, zero terminations, and zero non-renewals, can you provide examples of 3-5 franchisee success stories and contact information for franchisees to verify their experiences?

The franchise agreement includes an 18% annual interest rate on late payments and minimum weekly royalties regardless of business performance. How frequently do franchisees fall behind on payments, and what is the franchisor's enforcement practice?

Personal guarantees are required from all owners and spouses. In the event of a dispute, will the franchisor pursue personal assets of owners and their spouses, and has this occurred historically?

All disputes are subject to binding arbitration in Oklahoma County, Oklahoma. For a franchisee located outside Oklahoma, what are the estimated costs of pursuing arbitration in this jurisdiction versus alternative dispute resolution?

The non-compete clause covers any business 'the same as or similar to a Preservan Business' within 25 miles for 2 years post-termination. How broadly has the franchisor historically interpreted 'similar' businesses, and are there examples of legal disputes over non-compete enforcement?

Of the 11 current units, how many have completed their first full year of operation, and of those, what percentage met or exceeded the average gross sales figure of $248,128?

What is the expected timeline for franchisees to achieve profitability, and what is the average initial investment required to launch a unit (including working capital)?

The franchise agreement references Item 19 financial performance data. Will the franchisor provide copies of complete Item 19 disclosures for review, including revenue, profit, and expense breakdowns by unit age and territory type?

How many of the current 11 franchisees are operating in the same metropolitan area versus different territories, and what encroachment protections exist if the system continues to expand rapidly in a given region?

Given the rapid expansion, what training and ongoing support programs are provided to new franchisees, and what is the average time investment required from franchisees monthly versus annually?

The renewal fee is $27,000. If a franchisee does not renew after the initial 10-year term, what happens to the territory, and can the franchisor place a new franchisee in the same market immediately?

What percentage of franchisee revenue comes from residential versus commercial customers, and are there seasonal fluctuations in demand that could impact weekly royalty obligations?

The franchisor must indemnify and defend franchisees in certain circumstances. Can you clarify specific examples of when the franchisor assumes liability versus when franchisees bear their own defense costs?

Has the system ever terminated a franchisee agreement before the end of the initial 10-year term? If so, what were the circumstances and outcomes?

What is included in the $54,000 franchise fee, and are there additional startup costs for equipment, inventory, insurance, or technology systems not disclosed in this amount?

The technology fee is $500. What specific services, software, and support does this cover, and has this fee increased since the franchise's inception in 2022?