Puddle Pool Services USA, Inc.

The transfer fee of $4,950 is significantly lower than the typical range of $5,500-$15,000 for this franchise type. What is the rationale for this below-market transfer fee, and are there any additional costs or conditions that apply when a unit is transferred?

Your 3-year compound annual growth rate of 25.99% substantially exceeds the typical range of -0.49% to 13.3%. What specific growth strategy or market conditions have driven this expansion from 1 unit to 2 units, and what are your projections for the next 3-5 years?

The franchise agreement contains 22 non-curable defaults allowing immediate termination without cure opportunity. Can you provide specific examples of what constitutes a non-curable default and whether any franchisees have been terminated under these clauses?

The post-term non-compete restricts activity in 'any residential and commercial pool cleaning business' within 25 miles for 24 months. How broadly is this restriction interpreted, and are there any exceptions or modifications available for franchisees in adjacent service areas?

All disputes must be resolved through binding arbitration with class action waiver and no jury trial rights. Has the franchisor experienced any arbitration disputes with franchisees, and what were the outcomes?

Renewal requires completion of 'additional training' and 'required upgrades to conform to current specifications.' What are the estimated costs for these renewal upgrades, and what happens if a franchisee cannot afford or complete them?

Personal guarantees are required from all principals and their spouses. Are these guarantees limited to specific obligations, or do they cover all potential liabilities including indemnification claims?

You currently operate only 2 units with zero unit growth in the past year despite the 25.99% three-year CAGR. What explains the deceleration from 2023 to 2024, and what is your realistic unit growth forecast?

Zero litigation cases are reported. Has the franchisor ever sent demand letters, cease-and-desist notices, or pursued informal disputes that did not result in formal legal cases?

The Item 19 reports average gross sales of $700,204 across reporting units. How many of the 2 current units reported this data, and what is the sales performance range among operating franchises?

What specific support, training, and resources does the franchisor provide to help franchisees achieve the $700,204 average gross sales figure?

The franchise agreement requires indemnification of the franchisor for all claims. What types of claims are excluded from indemnification, and are there any caps on franchisee liability?

With exclusive territory and encroachment protection as core features, can you explain how the franchisor defines and enforces territory boundaries, and what recourse exists if encroachment occurs?

Given the very small system size of 2 units, how does the franchisor support marketing, technology, and operational infrastructure compared to larger competitors?

The renewal conditions include 'full compliance' with the agreement. What specific metrics or audit procedures determine whether a franchisee has achieved full compliance during their initial 10-year term?

Are the renewal fee ($4,950) and transfer fee ($4,950) subject to inflation adjustments or periodic increases, or are they fixed for the full 20-year potential term?

The 5-day cure period applies to monetary breaches. What is the franchisor's track record of exercising the cure provision versus proceeding directly to termination?

What is the franchisee's capital requirement beyond the $49,500 franchise fee to establish a pool cleaning operation, and what does the franchisor provide in startup support?