Restoration 1

The franchisor initiated 6 litigation cases as defendant over 3 years while also acting as plaintiff once—can you provide details on the nature of these disputes and whether they relate to financial disputes, territorial conflicts, or operational disagreements?

Termination rate of 8.1% significantly exceeds the typical range—what are the primary reasons franchisees are being terminated, and can you provide copies of recent termination notices showing the specific defaults cited?

With 24 unit closures in 2024 (the highest year on record), what specific operational or market challenges have contributed to this increase compared to 13 closures in 2021?

The technology fee of $525/month exceeds typical ranges for your category—what specific technology platforms and services are included, and can this fee be negotiated or waived based on unit performance or tenure?

Transfer fee is $5,000, which is below the typical range—does this low fee create barriers to franchisees exiting the system, and are there restrictions on who the franchisor will approve as a transfer recipient?

One litigation case is currently pending—can you disclose the nature of this dispute, the parties involved, and its current status without breaching confidentiality?

Non-exclusive territory with no encroachment protection is unusual for this category—can you explain the franchisor's policy on multi-unit ownership and whether the franchisor reserves the right to open competing units in your territory?

Renewal requires 10 conditions compared to a typical 5-8—what are these specific renewal conditions, and can you clarify whether substantial compliance means 100% compliance or allows for flexibility in how conditions are met?

Bottom quartile units are reporting $400,000 in gross sales, above typical minimums—at what gross revenue level do franchisees typically fail to meet the minimum revenue requirements mentioned in the franchise agreement?

The franchise agreement requires minimum average monthly collected gross revenue beginning in month 25—what is this specific threshold, how is it calculated, and what are the consequences if units fall short?

With binding arbitration required within 50 miles of Dallas, Texas, and waiver of jury trial and class action rights—how many disputes have been arbitrated versus settled, and what were the typical outcomes?

Personal guarantees are required from all owners and spouses—can you explain whether spouses are obligated to personal guarantees if they have no ownership stake, and are there any circumstances under which this can be negotiated?

The post-term non-compete covers 7 specific service categories (water, fire, smoke cleanup, mold mitigation, biohazard cleanup, pack-out, and content processing) within 25 miles for 2 years—are these services core to the franchise model, and how aggressively does the franchisor enforce this restriction?

Growth from 265 to 298 units over 3 years (net gain of 33 units) occurred while turnover averaged 10.9% annually—how many franchises were recruited versus how many exited, and at what cost per acquisition?