SCA Appraisal Services

The royalty rate of 50% is substantially higher than the typical 6-10% for this type of franchise. Can you provide detailed documentation of how this royalty is calculated and what specific services and support justify this rate?

The franchise fee of $10,000 is significantly lower than typical fees of $31,125-$50,000 for this category. What is included in the initial franchise package, and what additional costs should franchisees expect in their first year?

The transfer rate of 9.1% exceeds the typical range of 0-5.18%. Can you provide data on why franchisees are transferring their units at above-average rates, and whether transfers indicate dissatisfaction or market consolidation?

The system has declined from 93 units 3 years ago to 88 units currently. What factors contributed to this decline, and what specific initiatives are in place to grow the system going forward?

Support and Training scores at 67, below the typical range of 74-91 for this category. Can you detail what training is provided to new franchisees, ongoing support offered, and what support metrics measure franchisee satisfaction?

There is 1 litigation case on record with the franchisor as defendant. Can you provide details about this case, including the nature of the dispute, its current status, and how it was resolved?

The territory is marked as protected but not exclusive. What does 'protected' mean in practical terms, and can the franchisor place additional franchisees within my geographic area if they are non-overlapping?

The non-compete clause restricts business within 25 miles for 2 years post-termination. Has the franchisor ever enforced this clause against former franchisees, and are there any disputes pending related to non-compete enforcement?

Item 19 financial data is available but not displayed in this report. Can you provide the Item 19 document showing median and average gross sales for operating franchisees, along with the number of units that reported this data?

Eight units closed in 2022, but only 1 and 6 closed in 2023 and 2024 respectively. What drove the spike in 2022 closures, and do you expect closure rates to remain at the lower levels seen in 2023-2024?

Personal guarantees are required from all equity holders with unlimited scope covering all franchise obligations. How have franchisees fared if they've needed to make claims under the indemnification clause, and are there limitations or caps on liability exposure?

The renewal fee is $0. Are there any other costs associated with renewing a franchise contract after the initial 5-year term, and what is the typical approval rate for franchise renewals?

System Health scores at 43, below the typical 46-70 range. What specific metrics underlie this score, and what corrective actions is the franchisor taking to improve system health?

Can you provide the average AUM (Assets Under Management) or revenue benchmarks for operating franchisees to help assess income potential for a typical unit?

The Ad Fund rate is 0%, which is below the typical 1-2.75%. How does the franchisor fund marketing and brand development at the system level, and how are marketing initiatives communicated to franchisees?

Termination rate is 0% across the available data. Has the franchisor ever terminated franchisees, and if so, under what circumstances? What are the grounds for franchisor termination per the franchise agreement?

Non-renewal rate is 0%, meaning all franchisees have renewed their contracts to date. Are there franchisees approaching the end of their initial 5-year term currently, and what percentage historically renew versus exit?

The dispute resolution clause grants the franchisor sole discretion to require binding arbitration in Los Angeles. How often do disputes arise between franchisor and franchisees, and what is the typical cost and duration of arbitration?

Can you provide a breakdown of the 8 closures and 8 transfers in 2022 by reason (e.g., business performance, owner retirement, relocation, franchisor-directed)?