Rainbow Restoration

The $698 monthly technology fee is significantly above the typical range of $130-$500 for this franchise category. What specific technology services and software does this fee cover, and is this fee subject to increase during the contract term?

Can you provide details on the 1 pending litigation case filed by the franchisor as plaintiff? What is the nature of this dispute, the defendant's role (franchisee, supplier, or other), and expected timeline for resolution?

The 3-year turnover rate of 19.0% exceeds the typical range of 1.85-16.2%. What are the primary causes of unit exits beyond terminations, and what operational or market challenges have contributed to this higher turnover?

Termination causes in your franchise agreement number 12, which is below the typical range of 14.0-22.0. What specific conduct or performance failures constitute grounds for termination, and how frequently are these grounds invoked in practice?

Your 3-year financial performance data shows a median gross sales of $612,588 against an average of $1,049,780. What accounts for this significant gap, and how many units are represented in this Item 19 disclosure?

Regarding the operational control clause that permits franchisor control over 4 categories of suppliers with sole-source supplier requirements: Can you provide examples of these approved suppliers and the markup or cost premium franchisees typically incur compared to open-market alternatives?

The non-compete restriction of 2 years and 25 miles applies post-termination. If a franchisee voluntarily exits at the end of their initial 10-year term and chooses not to renew, does this non-compete restriction still apply?

Can you clarify the distinction between the 22 closures and 19 terminations reported in 2022? Specifically, which of the 22 closed units were franchisor-initiated terminations versus voluntary closures or other cessations?

In 2024, transfer rates increased to 12 units compared to 5-6 in prior years, while terminations declined. Does the franchisor actively facilitate unit transfers to existing franchisees, and are there any approval or fee barriers to such transfers?

All ownership stakeholders holding 5% or more must provide personal guarantees, and spouses may be required to guarantee as well. Under what specific circumstances would the franchisor require a spouse guarantee, and what are the enforcement mechanisms if a unit fails?

The renewal option requires a new fee of $5,000 to extend for another 10 years. Are there any operational or system updates required at renewal, and can the franchisor modify the royalty rate, ad fund, or technology fee terms at renewal?

Your Support & Training score of 95/100 significantly exceeds the typical range of 76.0-90.0. What specific training programs, ongoing support, and field assistance are provided to franchisees, and what is the frequency and duration of such support?

The franchisor maintains absolute pricing control over approved suppliers under the operational control clause. Are there provisions for competitive bidding among approved suppliers, and can franchisees challenge pricing if they believe costs are unreasonably high?

Of the 313 units reported 1 year ago, 3.3% were terminated and 3.6% were transferred. Can you identify which regions or market types show higher termination rates, and are there specific performance metrics or thresholds that trigger termination discussions?

Regarding the indemnification requirement: What specific claims or liabilities must franchisees indemnify the franchisor for, and are there any caps on indemnification obligations or exclusions for franchisor negligence or willful misconduct?

The territory is protected but not exclusive, meaning other franchisees or company-owned units could operate in your area. How does the franchisor define 'protected' territory, and what specific restrictions prevent other franchisees from competing directly within your defined area?

Item 19 financial performance data is available. Beyond median and average gross sales, what additional metrics are disclosed, such as operating expenses, net profits, system-wide ranges, or breakdowns by unit age or geography?

The net unit growth of 17 units over one year masks significant underlying turnover (closures, terminations, transfers). Is the franchisor actively recruiting new franchisees to offset exits, and what are the targets or growth projections for the next 3-5 years?