The technology fee of $750/month is significantly higher than typical for Health & Beauty franchises. What specific technology services and tools are included in this monthly fee, and how is it justified relative to competitors?
#1
Given the ad fund rate of 4.5% is above typical range, how are these funds allocated, what marketing results have franchisees achieved, and is participation mandatory or optional?
#2
The system has grown from 1 unit to 4 units in 3 years. Can you provide details on the 2 units not currently reported—were they transferred, closed, or terminated, and why?
#3
With a non-compete radius of only 5 miles (below the typical 5.75-25.0 mile range), how does the franchisor prevent market saturation or encroachment, particularly in densely populated areas?
#4
The transfer fee of $24,500 exceeds typical ranges. What services or approvals justify this fee, and is it negotiable or fixed?
#5
Your Item 19 shows average gross sales of $889,959 but median of $698,633—a significant gap. How many franchisees are reporting these figures, and what explains the variance between top and median performers?
#6
The initial term is 5 years versus the typical 10 years. Why is the contract term shorter, and does the franchisor have renewal rate data showing how many franchisees renew or exit after the initial 5-year term?
#7
Can you clarify the approved supplier list requirements mentioned in operational control clauses? Which suppliers are pre-approved, what are the markup allowances, and can franchisees negotiate alternative suppliers?
#8
The personal guarantee and spouse guarantee requirements are noted as franchisor-favorable. Can you explain the specific financial obligations spouses are guaranteeing even without ownership interest?
#9
Zero litigation cases are reported. Has the franchisor or any franchisees been involved in disputes resolved through arbitration, mediation, or settlement rather than court cases? If so, provide summaries of these disputes.
#10
With zero exit activity reported, can you provide names and contact information for all 4 current franchisees so prospective owners can conduct independent reference checks?
#11
The Financial Performance score of 65 exceeds the typical range for this category. What factors contributed to this above-average score, and how confident is the franchisor in sustaining these performance levels with new franchisees?
#12
The Support & Training score is 100/100, the maximum possible. What specific training and ongoing support metrics achieved this perfect score, and can you provide details on training duration, cost, and support frequency?
#13
Given the relatively new franchise system (1 unit in 2023, 4 currently), how many of these units are owned by insiders, family members, or the franchisor itself versus independent franchisees?
#14
The renewal fee of $12,250 represents 25% of the initial franchise fee. Is this mandatory upon renewal, and what happens if a franchisee declines renewal after the 5-year initial term?
#15
Can you explain why the Territory score of 60 is below the typical range of 75-85? Specifically, what territory protections are missing or inadequate compared to competitors?
#16
The Investment score of 81 is above typical range. Does this reflect a lower investment requirement relative to competitors, and what is the total startup cost range including franchise fee, equipment, and working capital?
#17
Are there any pending disputes, complaints filed with state franchising authorities, or ongoing investigations involving ScoliCare that are not reflected in litigation data?
#18