Can you provide details on the 1 pending litigation case, including the nature of the claim and expected resolution timeline?
#1
Why is the monthly technology fee of $850 more than 40% higher than the typical range for home services franchises, and what specific technology and services does this cover?
#2
Given the system expanded from 1 unit to 4 units in just 3 years, what are the franchisor's near-term growth projections, and how many new units are currently in development?
#3
The agreement lists 28 termination causes compared to a typical range of 14-21. Can you explain the most common or significant termination causes that have been used historically?
#4
Since territory is protected but not exclusive, can you clarify what prevents the franchisor from adding other Roof Scientist units in my territory?
#5
The agreement requires 10 renewal conditions compared to a typical range of 6-9. What specific conditions have been most challenging for franchisees to meet at renewal?
#6
What is the minimum monthly royalty of $300 based on, and at what revenue level does the 7% royalty rate exceed this minimum floor?
#7
Can you provide contact information for the 3 other existing franchisees so I can discuss their actual operating performance and satisfaction with the system?
#8
The non-compete is 2 years within 25 miles of 'any franchised business territory.' If the franchisor adds units to my area, would this expand the radius where I cannot compete?
#9
Why has the system never experienced a unit termination or closure in 3 years—is there data available on franchisees who left through non-renewal or voluntary exit?
#10
What percentage of the $850 monthly technology fee is allocated to customer acquisition/digital marketing versus software licensing and support?
#11
Are the 10 renewal conditions structured as requirements that must be met, or are they negotiable in the renewal discussion?
#12
The franchise fee is $59,900. What is included in initial training, and how long is the ramp-up period before reaching the average gross sales of $525,961?
#13
Can you break down the Item 19 financial performance data by franchisee experience level (start-up vs. established) to understand if the $525,961 average is realistic for new franchisees?
#14
The $10,000 transfer fee applies to changing franchise ownership. Are there additional franchisor approval requirements or costs beyond this fee?
#15
Since the franchise has only 4 units, how is the 2% advertising fund managed and deployed, and is there a minimum pool size before marketing initiatives launch?
#16
What is the franchisor's policy if a franchisee fails to meet the remodeling or updates requirement listed as a renewal condition?
#17
Can you clarify which of the 8 mandatory purchase categories allow price competition between approved suppliers, and which are exclusive to the franchisor?
#18
Investment costs score 62 versus a typical range of 74-75 for home services franchises. What are the total startup costs including equipment, inventory, working capital, and real estate?
#19
The score for risk factors is 78, above the typical range of 58-76. What specific operational or financial risks does the franchisor identify in the FDD?
#20