The franchise reported 12 unit closures in 2024 but a 0.0% turnover rate. Can you explain the discrepancy and provide details on why these 12 units closed—were they franchisor-initiated terminations, voluntary exits, or other circumstances?
#1
The Financial Performance score is 40/100, significantly below the typical range of 54.0-60.0 for home services franchises. Why is Item 19 (financial performance disclosure) not included, and what financial metrics should prospective franchisees expect?
#2
Your non-compete restriction of 10 miles is substantially narrower than the typical 25.0-40.0 mile range for home services franchises. What specific geographic protections does this narrower radius provide, and how does the franchisor prevent competitive market saturation in densely populated areas?
#3
Renewal requires meeting 10 specific conditions, above the typical 6.0-9.0 condition range. Can you provide the complete list of renewal conditions and clarify which are negotiable versus non-negotiable?
#4
The Risk Factors score of 80/100 is above the typical range of 58.0-76.0. What specific risk factors drive this elevated score, and how do they compare to other franchises in the category?
#5
The Support & Training score of 95/100 exceeds the typical range of 79.0-90.0. What training programs and ongoing support services are included, and are there additional costs beyond the $545 annual technology fee?
#6
You report zero litigation cases in 3 years, which is positive. Have there been any disputes, complaints to franchisees, or regulatory actions that did not result in formal litigation?
#7
The Investment Costs score is 79/100, above the typical 74.0-75.0 range. What is the total estimated investment required beyond the $59,900 franchise fee, including equipment, inventory, and working capital?
#8
The agreement allows for 20 non-curable defaults resulting in immediate termination. Can you provide specific examples of what constitutes a non-curable default, and how will franchisees be informed of this risk upfront?
#9
The franchise requires remodeling or refurbishing business premises as a renewal condition. What are the estimated costs and timelines for this requirement, and is the franchisor providing design standards or cost-sharing arrangements?
#10
Personal guarantees are required from all owners with 10% or greater equity interest. How does the franchisor enforce these guarantees, and can you provide examples of cases where guarantees have been called upon?
#11
Late payment fees include $100 for second occurrences plus 12% annual interest on overdue amounts. What is the grace period before late fees are assessed, and how frequently do franchisees experience payment issues?
#12
The franchisor controls 10 categories of products and services for approved suppliers only. Can you list these 10 categories and explain how approved supplier pricing is established and monitored?
#13
The agreement allows the franchisor to establish maximum and/or minimum prices on products and services. How is price control exercised, and what mechanisms exist for franchisees to challenge pricing decisions?
#14
You report minimum performance requirements specified in the Data Sheet. What are these specific requirements, what happens if a franchisee fails to meet them, and how are they enforced?
#15
Territory is protected but not exclusive. What specific protections prevent the franchisor from opening competing units in your territory, and under what circumstances can the franchisor expand services within your protected area?
#16
Transfer of franchise ownership is permitted but transfer fees are not disclosed. What is the franchisor's approval process for transfers, and what fees or conditions apply?
#17
The system grew from 78 units 3 years ago to 89 units currently. How many of these 11 new units were franchisee-initiated growth versus franchisor-assisted recruitment, and what is the pipeline for future growth?
#18
Given the 12 closures in 2024, what support systems or early warning protocols exist to help struggling franchisees avoid closure, and what is the franchisor's track record in helping underperforming units?
#19
The Investment Costs score of 79/100 is elevated. Are there financing options available for franchisees, and does the franchisor provide guidance on preferred lenders or SBA loan pathways?
#20