Right at Home

Given average gross sales of $1.74M are above the category typical range, what percentage of franchisees in your network achieve sales within this upper range versus below the median of $1.34M?

The non-compete restriction is 1 year and 10 miles—significantly narrower than the category typical range of 2 years and 20-46 miles. What is the rationale for these narrower restrictions, and how does this affect your ability to prevent former franchisees from competing?

With 10 renewal conditions (above the typical 6-8), can you provide a detailed list of all 10 conditions and explain which conditions are most frequently cited as reasons for non-renewal or failed renewals?

Your total potential contract term is 25 years (exceeding the typical 20 years)—can you clarify the specific conditions required for each of the 3 renewal options and whether franchisees have any right to renew versus franchisor discretion?

The renewal fee of $4,950 is calculated as 10% of the 'then-current initial franchise fee'—has the initial franchise fee changed historically, and can you provide examples of renewal fees paid by franchisees in previous renewal cycles?

Despite zero litigation cases on record, can you provide details on any disputes, complaints, or regulatory inquiries involving franchisees that may not have resulted in formal litigation?

With 9-11 closures annually, what are the primary reasons franchisees are closing or transferring their units? Are there specific geographic or demographic factors driving these exits?

The personal guarantee clause requires owners and spouses to guarantee all franchise obligations—are there any circumstances under which personal guarantees can be waived or limited?

You require franchisees to purchase only from a Required Suppliers List with maximum price restrictions—can you provide the current list of approved suppliers and examples of the price controls applied?

What specific training and support services does your 95/100 Support & Training score reflect, and how frequently are franchisees provided with ongoing operational guidance after launch?

Among the 551 current units, how many were originally opened in the past 5 years, and what is the average unit tenure across your entire franchise system?

Can you clarify the indemnification clause requiring franchisees to indemnify the franchisor 'against all losses, costs, claims, and damages'—are there any exclusions for franchisor negligence or breach of contract?

With transfer fee of $24,500, does this fee apply whenever ownership changes hands, and are there circumstances where the fee can be waived or negotiated?

What percentage of your 551 units are company-operated versus franchisee-operated, and how do their financial performance metrics compare?

The financial performance data (Item 19) shows median and average gross sales—can you break down net profit margins and operating expenses so prospective franchisees understand actual profitability?

Given the 4.5% annual transfer rate, can you provide data on how long franchisees typically hold their units before transferring, and what percentage of transfers are approved versus denied?

With encroachment protection in exclusive territories, what is your process for evaluating whether a new unit would encroach on an existing franchisee's territory, and are there any circumstances where you would allow encroachment?

The operational control clause mentions 5 categories of supplier restrictions—can you list these 5 categories and explain whether franchisees have any input in supplier selection or pricing negotiations?

How many of the 551 current units have been through at least one renewal cycle, and what percentage successfully renewed versus were not renewed or terminated?