RooterMan

What specific operational or compliance failures triggered the dramatic spike in terminations (86 terminations in 2024 vs. 12 in 2023)? Were these related to a particular policy change or enforcement action?

Can you provide a detailed breakdown of the 15 total litigation cases by type (contract disputes, regulatory violations, employment claims, etc.) and clarify the nature of the 2 pending cases?

The franchise fee of $4,975 is substantially below the category average of $45,000-$59,900. What is included in this fee, and what additional upfront costs should franchisees expect before opening?

The transfer fee of $20,000 exceeds typical ranges. Under what circumstances does this fee apply, and can it be negotiated or waived in cases of hardship or family transfers?

Given the 18.1% annual turnover rate and accelerating closures, what retention programs or support improvements is the franchisor implementing to stabilize the remaining 535 units?

The contract lists 22 termination causes (above the typical 14-21 range). Can you clarify which specific breaches are considered material vs. minor, and what cure periods apply to each category?

What is the franchisor's justification for the 10-day cure period for payment failures? How is this enforced, and what happens to franchisees who miss payments by small amounts?

The non-compete radius of 20 miles is below typical ranges (25-40 miles). How does the franchisor enforce non-competes, and are there documented cases of violations or disputes?

Can you provide detailed financial performance data (Item 19) showing median and average gross sales, expenses, and net profit for operating units by cohort (by opening year)?

The territory is protected but non-exclusive. What does 'encroachment protection' specifically mean in practice, and are there documented cases where the franchisor has added competing units?

Of the 2 cases where the franchisor was a defendant, what were the allegations and outcomes? Are any related to the litigation patterns or operational issues affecting current franchisees?

The non-renewal rate is 2.4% while termination is 13.2%. Of the units that did not renew, how many chose not to renew vs. being terminated? What incentives exist for renewal?

What mandatory supplier relationships exist beyond the 10 designated categories mentioned? Specifically, can franchisees negotiate volume discounts or use alternative suppliers for core services?

The contact center services, technology services, and accounting services are franchisor-exclusive. What are the annual costs for these services, and can franchisees audit pricing or switch providers?

The personal guaranty and spouse guaranty clauses are heavily franchisor-favorable. Are these negotiable for franchisees with substantial net worth or established business records?

What support and training does the 399 annual technology fee cover? Is this fee fixed or subject to increase, and what happens if franchisees refuse to pay?

Can you explain the historical unit trends: did the 23-unit decline from 2022-2023 represent normal market attrition, and what triggered the 118-unit drop in 2024?

The total potential term of 30 years exceeds typical ranges. At the end of year 10, what are the renewal terms, and are there automatic renewal provisions or must franchisees renegotiate?

The renewal fee of $2,500 (if charged) compared to the initial franchise fee of $4,975 suggests favorable renewal economics. Are renewal terms identical to the initial agreement, or are there substantive changes?

Given the low system health score (5/100) and elevated risk factors score (47/100), what specific metrics is the franchisor tracking to address systemic issues, and what is the timeline for improvement?