Real Deals on Home Décor

The initial term is 5 years versus the typical 10 years for retail franchises—what is the rationale for this shorter initial commitment period?

Median unit sales of $337,246 are approximately 22% below the category average. Can you provide detailed Item 19 financials showing unit-level profitability, operating expenses, and net income ranges?

The non-compete clause extends 3 years (versus typical 2 years). How is the 3-year restriction enforced, and what specific activities are prohibited within the 20-mile radius?

Your contract lists 22 termination causes, above the typical 14-19 range. Can you explain which termination causes are most commonly invoked and provide examples?

The technology fee is $60 monthly, well below the category range of $100-$479. What specific technology and services are included, and are there additional tech costs not listed?

Why has the unit count declined from 51 three years ago to 46 today, despite zero franchisor terminations? Can you identify the primary reasons for the 5-unit closure/non-renewal?

The transfer fee of $2,000 is significantly below the typical $8,333-$20,000 range. Are there additional costs associated with franchise transfers, such as approval fees or retraining costs?

With an exclusive territory and encroachment protection guaranteed, how do you define territory boundaries, and have there been any disputes over territory encroachment?

Your arbitration clause specifies Salt Lake City, Utah as the dispute resolution venue and includes class action waivers. What percentage of franchisees are located outside Utah, and how does the Utah venue impact dispute resolution costs?

The contract requires personal guarantees and personal liability for all franchisees. Are there any franchise agreements that permit liability limitation or third-party entity ownership structures?

Can you provide a breakdown of the 4.3% annual exit rate—specifically how many were voluntary closures, how many were non-renewals, and what were the primary reasons cited?

The agreement grants the franchisor the right to suggest retail prices and specify maximum/minimum pricing. How strictly is pricing enforced, and have franchisees faced sanctions for pricing variations?

Can you provide the average unit volume (AUV) and median net profit figures from your Item 19, stratified by unit age and location type (urban, suburban, strip mall)?

Are there any pending or recently resolved disputes, litigation, or regulatory complaints not captured in the formal litigation record that franchisees should be aware of?

With 0% termination rate but a 4.3% exit rate, what percentage of exiting units were closed voluntarily versus transferred to new franchisees?

The Support & Training score is 76, below the category average of 84.0-99.0. What specific support, training, and marketing assistance does the franchisor provide, and are there any costs beyond the stated fees?

What is the typical franchisee timeline to profitability, and what percentage of franchisees achieve profitability within their first 2 years of operation?

Can you clarify whether the $60 monthly technology fee covers website, POS system, inventory management, customer relationship management, or other specific tools?

Given the below-average sales performance, what strategies does the franchisor recommend for improving unit-level revenue, and how active is the franchisor in working with underperforming units?

The renewal fee is $2,000. At renewal, are there renegotiation rights, or does the franchisee automatically renew under the existing terms and fee structure?