Given the franchise fee of $49,500 is 24% above the category average, what specific value proposition justifies this higher initial investment compared to competing real estate service franchises?
#1
The reported average gross sales of $1,606,091 significantly exceeds the typical range for this category. Can you provide Item 19 detail showing the sales distribution across individual units and the number of units included in this calculation?
#2
With only 2 units currently in the system, how was the average gross sales figure calculated, and does this include both active franchisees or data from historical units?
#3
The technology fee of $500 monthly is substantially higher than typical for real estate service franchises. What specific services, tools, or technology platforms are included in this fee, and are there alternatives or tiered pricing options?
#4
Can you explain the growth from 1 unit in 2023 to 2 units in 2024? How many franchises were sold versus existing franchises renewed, and what is the pipeline for new franchise sales?
#5
The non-compete clause restricts franchisees for 3 years within a 50 miles radius. Are there geographic areas where this restriction is shorter, and can these terms be negotiated as part of franchise discussions?
#6
The agreement lists 23 termination causes, significantly above the typical 15-20. Can you provide a detailed breakdown of which causes are curable versus non-curable, and what is the typical reason for franchise exits in your system?
#7
Dispute resolution requires mandatory binding arbitration exclusively in Salt Lake City, Utah. Why is arbitration required in this specific location, and what are the typical costs and timelines franchisees should expect?
#8
Owners with 20% or greater interest must personally guarantee all franchise obligations. Are there scenarios where this personal guarantee can be released or modified, and what are the implications for multi-owner structures?
#9
With zero litigation cases on record, does this reflect a very young system or active dispute prevention? Can you describe your franchisee support and dispute resolution processes?
#10
The franchise agreement provides cure periods as short as 24 hours for public safety issues. What specific situations qualify as public safety issues under your agreement?
#11
Can you provide references or contact information for both current franchisees (the 2 units) and any franchisees who have exited the system? Given the limited unit count, direct contact seems essential for due diligence.
#12
What is included in the renewal fee of $5,000 after the initial 10-year term, and are there other costs associated with renewal beyond this stated fee?
#13
How does the franchisor support franchisees in generating the reported $1.6M+ in annual gross sales, and what is the typical ramp-up period for new franchisees to reach profitability?
#14
The post-term non-compete includes both geographic and customer non-solicitation restrictions for 3 years. Can you clarify the specific definitions of 'customer' and how this is enforced, especially for real estate transactions?
#15
Given the system is highly early-stage with only 2 units, what specific franchisee recruiting plans and system expansion goals does the franchisor have for the next 2-3 years?
#16
Are there any pending litigation cases, regulatory complaints, or franchisee disputes that are not yet reflected in the formal 3-year litigation data provided?
#17
What training and ongoing support programs are provided, and how are these reflected in or separate from the $500 monthly technology fee?
#18
Can you provide contact information for the single franchisee who has been with the system since 2023 to discuss their experience, challenges, and satisfaction with the franchise?
#19
The investment score of 48 is substantially below the category typical range of 70-78. What factors contribute to this lower investment rating, and how do they affect franchisee success?
#20