Schooley Mitchell

The franchise fee of $73,000 is 46% higher than the typical range for this franchise type. What specific services, training, and support justify this premium pricing compared to competitors?

Exit rates of 17.2% in the past year and 26.5% over 3 years significantly exceed the typical range. What percentage of these closures are due to franchise owner profitability issues versus market conditions or franchisor-related factors?

Gross sales metrics (median $117,946, average $148,537) are roughly 50-60% below the typical range for this category. Can you provide Item 19 disclosure details showing the distribution of franchisee profitability by unit age and territory type?

Two litigation cases against the franchisor have been filed in the past 3 years, exceeding the typical range. What were the nature of these cases, and have they been resolved or are they still pending?

The transfer fee of $5,000 is below the typical range of $5,250-$19,500. Does this lower transfer fee represent a policy to encourage unit transfers, and are there any conditions that would increase this fee?

With 46 unit closures in 2025 (the most recent year), what specific changes has the franchisor implemented to address retention and support ongoing profitability of remaining units?

The franchise does not offer exclusive territory. How does the franchisor manage customer overlaps and encroachment between units, and have non-exclusive territories contributed to unit closures?

What is the estimated break-even timeline for a new franchisee, and what percentage of operating franchisees reported positive cash flow in the most recent fiscal year?

The non-compete clause restricts activity for 2 years after termination or expiration. Have any franchisees challenged this restriction, and does the franchisor enforce it actively?

All disputes are resolved through binding arbitration with class action waivers. Has the franchisor ever required franchisees to pursue claims through arbitration, and what was the outcome?

Personal guarantees are required from all shareholders, directors, and officers. What specific performance metrics or circumstances would trigger franchisor action against personal guarantees?

Given the low transfer fee, how many units changed ownership through transfer in the past 3 years, and what were the reasons existing franchisees sold their units?

The system grew 21 net units despite 46 closures in 2025. What is the new unit pipeline for 2026, and what criteria does the franchisor use to qualify new franchisees?

The business services category typically generates higher sales volumes. What are the primary revenue streams for Schooley Mitchell units, and how dependent is profitability on a concentrated client base?

The renewal fee is $2,500. Of the 1 renewal option available, what percentage of franchisees have renewed versus exited after their initial 10-year term?

What specific training and ongoing support are provided to address the relatively low sales performance compared to category benchmarks?

Have any franchisees filed complaints with state franchise regulators, and if so, what issues did they raise?

What percentage of the $73,000 franchise fee covers initial inventory, software licenses, territory setup, and training versus other costs?