Qualicare of America

In 2024, 11 units closed and 7 were terminated out of 28 total units. Can you provide specific reasons for these 18 exits and clarify how many were franchisor-initiated versus franchisee-initiated?

Your royalty rate of 5.0% is below the typical range of 6.0-7.0% for health and beauty franchises. How do you ensure sustainable system support and growth with this lower royalty structure?

Median gross sales of $330,000 are 20% below the typical range for this category. What support or operational strategies help franchisees achieve profitability at this sales level?

The system has declined from 36 units 3 years ago to a current 33 units. What is your strategy to stabilize and grow the unit count given recent high turnover?

With a termination rate of 35.7% in the past year, what specific performance metrics or operational failures trigger franchisor termination of franchisees?

Your contract includes 22 termination causes, above the typical range of 15-21. Can you itemize the 22 termination causes and clarify which ones can be cured versus are non-curable?

The 15-day cure period for curable defaults is mentioned in the franchise agreement. Are there examples of defaults that franchisees have successfully cured versus those that led to termination?

What is the average lifespan of franchisees who remain in the system, and how does the 35.7% annual termination rate affect long-term franchisee profitability?

Minimum annual gross sales requirements are tied to maintaining territorial protection. What is this minimum threshold, and how many franchisees fail to meet it annually?

Can you explain why zero franchisee transfers occurred in 2024-2025 when the high exit rate suggests opportunities for established franchisees to acquire struggling units?

The non-compete restriction is 2 years within 20 miles. For franchisees in rural areas with limited geographic scope, how restrictive is this in practice post-termination?

How does the $15,000 transfer fee factor into resale economics for franchisees looking to exit the system?

With a Risk Factors score of 26 (well below the typical range of 64-80), what specific operational or financial risks should prospective franchisees prepare for?

Your Support & Training score of 78 is below the typical range of 81-96.25. What training and ongoing support does the franchisor provide to help franchisees succeed?

The Item 19 discloses a $330,000 median gross sales figure. Over what time period is this calculated, and what is the gross profit margin after accounting for all expenses?

Have there been any regulatory investigations or complaints from state franchise regulators regarding the high termination rate or business practices?

The total potential contract term of 25 years exceeds typical ranges. What renewal fees apply at each 5-year renewal, and are renewal terms guaranteed or negotiable?

Can you provide a breakdown of the 10 curable defaults and 12 non-curable defaults that would trigger termination?

The late payment interest rate of 3% per month (36% annually) is substantially higher than typical consumer credit rates. How frequently do franchisees face late payment issues, and has this contributed to terminations?

All shareholders and spouses must provide personal guarantees. How does this personal liability expose home assets and family finances in the event of franchise failure?