What were the specific circumstances and reasons for the 1 unit closure and 1 termination in 2023? Were these franchisor-initiated or franchisee-initiated exits?
#1
The franchise fee of $62,500 is above the typical range for this category—what additional services, inventory, or support justify the premium pricing compared to competitors?
#2
Can you provide details on the 2 litigation cases filed against the franchisor? What were the case types, outcomes, and whether any were settled or are ongoing?
#3
Gross sales average only $70,330 with a median of $61,166, significantly below the typical range of $286,000-$1.2M for home services franchises. What is driving this gap, and are these figures representative of mature units?
#4
How many units reported their financial data for the Item 19 filing, and what percentage of the total system does this represent?
#5
The non-compete clause requires 2 years and 60 miles—can you explain why the mileage radius is significantly broader than the typical 25-40 miles for this category?
#6
What specific products or inventory are required as minimum purchases under 'Exhibit B,' and what is the typical monthly or annual purchase commitment for a new franchisee?
#7
Can you detail the breakdown of the $140/month technology fee? What specific technology services and systems are included?
#8
The franchise fee is $62,500 but the typical range is $45,000-$59,900. Has this fee increased in the past 2 years, and if so, what changes prompted the increase?
#9
What is the 10% renewal fee calculation based on? If the franchisor increases the initial franchise fee, does the renewal fee automatically increase proportionally?
#10
Given the mandatory binding arbitration clause with class action waiver, what recourse would a franchisee have if disputes cannot be resolved in arbitration?
#11
The showroom must be open 50+ hours per week—can you clarify the specific required hours, whether exceptions exist for holidays, and what penalties apply for non-compliance?
#12
What support and training are provided initially and ongoing? The Support & Training score of 78 is below the typical range of 79.0-90.0—what specific areas are less robust than competitors?
#13
Can you explain the 1% monthly finance charge (12% annually) on overdue amounts? Is there a maximum cap on finance charges, or could they accumulate indefinitely?
#14
Personal guarantees are required from all interest holders and their spouses. Can you provide an example of a scenario where spouses' personal assets were pursued for franchise obligations?
#15
How does the system define 'full compliance' for renewal eligibility? What specific violations or performance metrics would disqualify a franchisee from renewing?
#16
The system grew from 28 units (3 years ago) to 47 units today—what is the breakdown of new franchises opened versus acquired or transferred units?
#17
Are there any restrictions on whom a franchisee can hire, particularly regarding non-solicitation of Purchase Green employees if a franchise is terminated?
#18
What happens to a franchisee's territory if they choose not to renew after the initial 10-year term? Can the franchisor recruit a replacement franchisee in the same territory immediately?
#19
The transfer fee is $7,500—does this fee apply only to voluntary transfers by the franchisee, or also if the franchisor requires a transfer as a condition of renewal?
#20