The franchise fee of $74,500 is significantly higher than the typical range of $30,000-$60,000 for cleaning and restoration franchises. What specific services, training, and support justify this premium pricing?
#1
The royalty rate of 10.0% exceeds the typical range of 6.0-8.13%. How does this rate compare to direct competitors, and is it structured as a percentage of gross or net revenue?
#2
The transfer fee of $37,250 is more than double the typical range of $5,500-$15,000. What does this fee cover, and are there any circumstances under which it can be negotiated or reduced?
#3
Three units closed in 2024, compared to two in 2022 and zero in 2023. What are the primary reasons franchisees are exiting, and what specific support measures is the franchisor implementing to address this trend?
#4
The system has declined from 26 to 25 units over 3 years with a negative 3-year CAGR of -1.3%. What is the franchisor's growth strategy, and what marketing support is provided to help franchisees build revenue?
#5
The Support & Training score of 71 falls below the typical range of 76.0-90.0 for this category. Can you provide detailed information about initial training duration, ongoing support frequency, and any digital resources available?
#6
The System Health score of 25 is significantly below the typical range of 41.75-73.25. What specific operational and financial metrics does the franchisor track to support franchisee success?
#7
RSI is currently the only approved supplier for equipment, chemicals, and supplies. What cost controls exist to prevent supplier markup abuse, and are there any provisions allowing alternative suppliers if pricing becomes uncompetitive?
#8
The non-compete restriction of 10 miles is substantially below the typical range of 21.25-50.0 miles for this category. Why is the protected territory radius smaller than typical, and what actual encroachment protection mechanisms exist?
#9
All disputes require binding arbitration in the franchisor's headquarters city. What is the typical cost of arbitration, and has the franchisor initiated arbitration against any franchisees in the past 5 years?
#10
The franchise requires unlimited personal guarantees with possible spousal guarantees. Under what specific circumstances would the franchisor enforce these guarantees, and are there any caps or limitations?
#11
The 1-year unit growth is -3.85% while the 3-year growth is -1.3%, suggesting an accelerating decline. Do you have projections for unit growth over the next 3 years, and what specific initiatives will reverse this trend?
#12
Median gross sales are $503,750 and average gross sales are $672,231—a significant gap suggesting wide variance in unit performance. What is the range of performance across units, and what percentage of units fall below the median?
#13
The 12.0% closure rate in the past year is substantially above the typical range of 0.0-8.53%. Do you have exit interview data that explains whether closures are due to business performance, personal circumstances, or franchisor disputes?
#14
One litigation case was initiated against the franchisor over the system's history. What was the nature of this case, what was the outcome, and were there any settlements or judgments?
#15
The Territory & Contract score of 58 indicates moderate concerns. Beyond the non-compete and transfer fee issues, what specific contract provisions most frequently become points of contention between franchisors and franchisees?
#16
The technology fee of $200 monthly totals $2,400 annually. What technology services and software tools does this fee include, and are there any mandatory upgrades or additional tech fees that could increase this cost?
#17
The 5-year initial term with 3 renewal options totals 20 years of potential contract duration. What happens if the franchisor chooses not to renew after the initial term, and are renewal terms negotiable?
#18
The Investment Costs score of 64 is below the typical range of 73.0-77.0. What is the recommended total startup investment range, and does this include working capital, insurance, vehicle, and equipment?
#19
The non-renewal rate is currently 0.0% while terminations are 0.0%, yet the system is declining. Are units closing voluntarily due to poor profitability, or are franchisees simply not renewing at contract end?
#20