The royalty rate of 10.0% is above the typical 6.0-8.1% range for cleaning franchises. What specific services and ongoing support justify this higher rate compared to competitors?
#1
The franchise fee of $74,500 exceeds the typical $30,000-$60,000 range. What is included in this fee that differentiates it from competitors, and is there flexibility in payment terms?
#2
The transfer fee of $37,250 is more than double the typical $5,500-$15,000 range. How is this fee calculated, and does it apply if you transfer the franchise to a family member or existing business partner?
#3
Three units closed in 2024 compared to zero in 2023. What were the primary reasons for these closures, and what percentage were due to market conditions versus operational challenges?
#4
The System Health score is 25/100, significantly below the typical range of 41.8-73.3. What specific metrics contribute to this low score, and what is the franchisor doing to improve system health?
#5
Unit count has declined from 26 to 25 over the past year. What is the franchisor's growth strategy, and are there specific markets or regions showing expansion?
#6
The non-compete restriction is 3 years and 10 miles. How is the 10-mile radius enforced when calculating territories, and does it include non-compete restrictions beyond your protected territory?
#7
Your Support & Training score is 71/100, below the typical 76.0-90.0 range. What initial and ongoing training programs are provided, and are there additional costs for advanced training?
#8
Can you provide the names and contact information for 10-15 franchisees, including those who have closed or transferred units in the past 2 years, so I can conduct independent reference checks?
#9
The franchise includes mandatory purchase of inventory and supplies from the franchisor or designated suppliers. What is the markup or pricing structure on these required purchases, and can I shop competitively for any items?
#10
The litigation history shows 1 case against the franchisor. What was the nature of this case, what was the outcome, and are there any ongoing disputes not yet filed?
#11
What is included in the $200 annual technology fee, and are there additional technology costs for point-of-sale systems, scheduling software, or customer management platforms?
#12
The renewal fee is $7,450. Are there any other costs associated with renewal, such as updated training, facility upgrades, or equipment replacements?
#13
The territory is protected but not exclusive. Does this mean the franchisor can place another franchisee next to me, and if so, how are disputes resolved?
#14
Item 19 financial statements are available. Can you provide details on how many units reported results, the time period covered, and any caveats about reported sales figures?
#15
What is the franchisor's policy on encroachment, and how does it handle complaints from franchisees about overlapping territories or nearby non-franchised competitors?
#16
The Investment Costs score is 64/100, below the typical 73.0-77.0 range. Beyond the $74,500 franchise fee, what are the typical total startup costs for a new franchisee, and are there financing options available?
#17
Mandatory arbitration is required with class action and jury trial waivers. Under what circumstances could disputes arise, and what has been the average time and cost of arbitration for past franchisee disputes?
#18
Personal guarantees are required if you operate as an entity. Can you negotiate to limit personal guarantees, and does the franchisor require spousal guarantees in community property states?
#19
The Ongoing Fees score is 57/100, below the typical 62.0 range. Beyond the 10.0% royalty and 1.0% ad fund, are there any other recurring fees, such as insurance requirements, website maintenance, or system updates?
#20