Shack Shine Home Services

What specific operational or financial performance issues triggered the 19.4% termination rate, and how many of these 6 terminated units in 2024 were first-time violations versus repeat offenders?

Given the 29% annual turnover rate in the past year, what support or corrective measures has the franchisor implemented to address unit closures and prevent further decline?

Can you provide detailed breakdown of the 9 units that closed in 2024—how many were voluntary closures versus franchisor-initiated terminations, and what were the primary reasons cited?

The system contracted 25.8% in the past year from 31 to 23 units. How does the franchisor project unit growth or stabilization over the next 2-3 years?

Why is the initial term only 5 years instead of the typical 10 years for home services franchises, and does this shorter term affect renewal eligibility or franchisor support commitments?

The royalty rate of 8% and ad fund rate of 8% (totaling 16%) exceed typical ranges. How are these funds allocated and tracked, and what specific marketing or operational support does this higher combined rate fund?

What minimum royalty thresholds apply, and how many units in 2024 failed to meet minimum royalty requirements, triggering the additional fees mentioned in the agreement?

Can you explain the discrepancy between the franchise fee of $40,000 (below typical range) and the higher combined ongoing fees? Are there additional startup costs not reflected in the franchise fee?

The non-compete clause is only 1 year versus the typical 2 years. Have former franchisees who closed units returned to the market as competitors, and what enforcement challenges has the franchisor faced?

Item 19 shows median gross sales of $429,104. What percentage of active units fall below this median, and what is the closure rate for units unable to achieve this benchmark?

With encroachment protection enabled but territory not exclusive, how many cases of franchisor-approved competition within a franchisee's territory have occurred, and how were disputes resolved?

The renewal fee is $15,000 with conditions including potential vehicle replacement or repainting. How much have these renewal compliance costs averaged for units that renewed, and has this affected renewal acceptance rates?

Are there minimum financial reserve requirements before signing, and have low reserves correlated with higher closure or termination rates in your data?

What is the average lifespan of units that have survived 3+ years, and what differentiates high-performing units from those terminated or closed?

Given the 6 curable and 15 non-curable defaults listed, can you provide specific examples of violations that triggered terminations in the past 24 months?

The late payment clause includes 5% additional fee plus 24% annual interest. How many franchisees have incurred these penalties in the past 2 years, and what is the average amount owed?

What training and ongoing support metrics are tracked, and has inadequate training/support been identified as a factor in closures or terminations?

Can you provide references from franchisees who closed or transferred units in 2023-2024, including reasons for exit and their assessment of franchisor support?

What are the franchisor's plans regarding the System Health score of 0/100, and what specific improvements are underway to stabilize the unit base?