Service Star Painters

The franchise fee of $9,987 is substantially lower than the typical range of $45,000-$59,900 for home services franchises—what is included in this franchise fee and what additional startup costs should a franchisee anticipate?

Your royalty rate of 8.0% and ad fund rate of 3.0% both exceed typical ranges for this category. Can you provide a detailed breakdown of how the ad fund is allocated and what marketing support franchisees receive in return?

The initial term is 5 years with a potential total term of 25 years through renewals. What specific conditions must be met to qualify for each 10-year renewal, and are renewal fees guaranteed or subject to adjustment?

The contract lists 27 termination causes, which is above the typical range. Can you provide the complete list of termination causes and clarify which are performance-based versus non-performance-based?

Given the 10 renewal conditions in the agreement, what happens if a franchisee meets most but not all conditions at renewal time—is renewal denied entirely or are there remediation opportunities?

The non-compete clause restricts activity for 2 years within 25 miles of any franchised or system business. How is 'system business' defined, and does this apply to company-owned locations as well as franchised units?

Personal guarantees are required from all members/shareholders on a joint and several basis, including spouse guarantees. Are there any circumstances where these guarantees can be released or modified during the franchise term?

The agreement requires purchasing paint, supplies, equipment, and marketing materials exclusively from approved suppliers. Can you provide the current list of approved suppliers and explain how pricing is determined or controlled?

Indemnification requirements appear to cover claims caused by the franchisor's actions. What liability insurance coverage does the franchisor carry, and are there any claims or incidents franchisees should know about?

With 0 current franchised units reported, is this a newly launched franchise system, and what is the timeline for opening the first franchised location?

What is the current status and growth plan for the franchise system, and do you have any franchisees in operation or pre-signing agreements in place?

Since there is no Item 19 financial performance disclosure, what financial performance data or references can you provide to help prospective franchisees understand unit economics?

Can you provide contact information for any current or former franchisees who would be willing to discuss their experience with the system?

The transfer fee is $10,000—does this fee apply to all transfers, including transfers to family members or employees, or are there exceptions?

What training and ongoing support is provided to franchisees, and what is the typical timeline from signing to opening the first location?

Are there any disputes, complaints, or regulatory investigations involving the franchisor that are not captured in litigation records?

How does the franchisor handle encroachment if a new unit is opened near an existing franchisee's territory, and what remedies are available to the affected franchisee?

What are the specific operational standards and performance metrics franchisees are required to meet, and what happens if these are not met?