The technology fee of $510 monthly significantly exceeds the category typical range of $150-250. What specific services, software licenses, or support does this fee cover, and how is it justified relative to competitors?
#1
The franchise fee of $60,000 is above the category typical range of $36,250-51,225. What additional benefits, support, or services justify this premium pricing compared to other technology franchises?
#2
With only 2 units currently in the system and perfect retention (0% turnover), how long has the system been operating and when were each unit established?
#3
The average gross sales of $2,082,536 exceeds the category typical range of $929,203-1,918,692. Are both reporting units achieving this level of performance, or is this driven by one unit significantly outperforming?
#4
What specific criteria or performance metrics must a franchisee meet to maintain their franchise, and how frequently are these reviewed?
#5
Can you provide details on why the system went from 1 unit to 2 units in the past year? Was this organic growth, a new franchisee opening, or a conversion?
#6
The non-compete clause restricts competing in similar IT services for 2 years within 50 miles. How is 'similar IT services' defined, and what specific business activities would violate this restriction?
#7
You require personal guarantees from all owners and their spouses. In what circumstances would the franchisor enforce these personal guarantees, and are there any limitations on the franchisor's indemnification claims?
#8
Given that you mention franchisees must indemnify the franchisor for all claims 'even when franchisor negligent,' what recourse does a franchisee have if the franchisor's actions directly harm their business?
#9
What is the renewal fee of $5,000 used for, and does it cover renewal of the franchise agreement, territory rights, or other services?
#10
With a 10-year initial term and 10-year potential total term, what renewal options are available after the initial term expires?
#11
Since Item 19 financial performance data is provided, can you share the detailed P&L information, including operating expenses and net profit margins, for the reporting units?
#12
What support and training is included in the initial investment, and what are the ongoing training and support requirements?
#13
Are there any performance quotas or minimum revenue requirements for franchisees to maintain their franchise status?
#14
What is the transfer fee of $12,500 used for during a franchise transfer, and what approvals or requirements must the buyer meet?
#15
Can you explain the difference between 'protected but not exclusive' territory and provide examples of how encroachment protection would work in practice?
#16
Given zero litigation history, have there been any disputes between the franchisor and franchisees that were resolved outside of formal litigation?
#17
What happens if a franchisee decides to exit or is terminated before the 10-year term ends—are there any buyback options or exit provisions?
#18
How does the franchisor support franchisees in achieving the reported average gross sales of $2,082,536, particularly for new franchisees in their first year?
#19