Senior Care Authority

The royalty rate of 8.0% exceeds the typical 5.0-6.0% range for senior care franchises. How does the franchisor justify this higher rate compared to competitors, and is it negotiable?

The monthly technology fee of $950 is more than double the typical range ($141-$439.50). What specific technology platforms and services does this fee cover, and are there itemized breakdowns available?

Gross sales across all quartiles are significantly below typical ranges (median $288,817 vs. typical $654,811-$1,249,161). Can the franchisor provide Item 19 disclosure details explaining unit economics and the factors contributing to lower sales performance?

The franchise agreement lists 25 termination causes, above the typical 15-21 range. Can you provide a detailed list of these causes and clarify which ones allow immediate termination without cure periods versus those requiring notice?

The total potential contract term is 10 years, compared to a typical 20-year potential. What are the renewal terms after the initial 10 years, and are there guarantees of renewal rights?

Unit closures increased from 2 in 2023 to 7 in 2024, representing a 250% spike. Can the franchisor explain the reasons for this increase and whether it represents a trend or anomaly?

The termination clause allows immediate termination for 17 non-curable defaults. What are the specific non-curable defaults that would result in immediate termination without opportunity to cure?

The non-compete clause restricts operation within 25 miles for 2 years. Does this restriction apply to all types of senior care services or only direct placement agencies, and has the franchisor enforced this clause?

Personal guarantees are required from all owners with 5% or greater interest and their spouses. Are these guarantees joint and several, and can they be limited or released under certain conditions?

The franchise requires mandatory binding arbitration in Las Vegas, Nevada with class action and jury trial waivers. What is the franchisor's arbitration cost structure, and who bears the costs of arbitration proceedings?

Can the franchisor provide contact information for units that closed or were terminated in the past 3 years to discuss their experiences and reasons for exit?

What support and training are included in the franchise fee versus what requires additional payment, and is the technology fee included in the advertised ongoing fee structure?

Transfer fee is $15,000. Does this fee apply to all types of transfers (sale, death, inheritance), and are there any circumstances where it can be waived or reduced?

The system has exclusive territory protection. How is territory defined, and what recourse do franchisees have if the franchisor encroaches or adds units within their territory?

Can the franchisor provide a 5-year financial projection for a typical new unit showing break-even timeline and realistic return on investment based on current unit performance data?

The franchise scores 46/100 in Financial Performance, significantly below the category average. Does the franchisor attribute this to market conditions, unit-specific issues, or systemic challenges, and what is their plan to improve performance?

What is the renewal fee of $7,500, and does it increase with inflation or franchisor discretion? Are there any conditions under which renewal can be denied?

Are there any pending legal disputes or regulatory investigations involving the franchisor that may not yet appear in public records?

The dispute resolution clause requires initial mediation followed by binding arbitration. What is the typical timeline and cost for resolving franchise disputes through this process?

Can the franchisor provide audited financial statements or other evidence supporting the median and average sales figures reported in Item 19?