Why is the franchise fee $0 when the typical range for Business Services franchises is $31,125-$50,000? What additional upfront costs should franchisees expect?
#1
The system lost 33 units over 3 years (542 to 509 units). What factors have contributed to these closures, and what is your outlook for unit growth?
#2
What specific support and training resources are provided, given that the Support & Training score of 71 is below the typical range of 74.0-91.0?
#3
Can you explain the declining 3-year CAGR of -2.07% and clarify what market conditions are affecting franchisee performance?
#4
Of the 62 units that ceased operations over 3 years, how many were due to franchisee economic failure versus other reasons (relocation, ownership change, etc.)?
#5
The termination rate is 1.0% annually. What are the primary reasons franchisees are terminated, and can you provide examples of recent terminations?
#6
Why is the non-compete period only 1 year when the typical range for this franchise type is 2.0 years? What geographic or industry restrictions apply after a franchisee exits?
#7
What is the median or average gross sales performance for franchisees? Can you provide an Item 19 earnings claim document?
#8
The technology fee is $100 monthly. What specific technology platforms and tools are included, and can this fee increase?
#9
What are the 7 curable defaults and 12 non-curable defaults referenced in the termination clause? Can you provide specific examples of each?
#10
The agreement requires $1,000 average monthly Gross Volume of Business in the first 6 months. What percentage of franchisees fail to meet this benchmark?
#11
Personal guarantees are required and may extend to spouses. Are there any circumstances where this requirement can be waived or limited?
#12
What does the indemnification clause require franchisees to cover, and are there any caps or limitations on franchisee liability?
#13
Late payments incur 15% interest charges. Are there any grace periods or payment plan options available for franchisees experiencing cash flow challenges?
#14
Since territory is not exclusive, how many other Proforma franchisees operate in your proposed service area, and what encroachment protections exist?
#15
What are the initial term length and renewal terms? Can you clarify the total potential contract length?
#16
How many franchisees have voluntarily exited the system in the past 2 years, and what were their primary reasons for leaving?
#17
What is the historical renewal rate for franchisees completing their initial term?
#18
Does the system provide any performance guarantees or buy-back options if franchisees cannot achieve the stated performance benchmarks?
#19
Can you provide references from at least 10 franchisees currently operating in a similar market to your proposed location, including at least 3 who are struggling or below-average performers?
#20