ShelfGenie

The franchise fee of $35,000 is significantly lower than the typical range of $45,000-$59,900 for home service franchises. What is included in the ShelfGenie franchise fee that may differ from competitors, and are there additional startup costs not reflected in this figure?

Gross sales figures are substantially below industry norms (median $5,041 vs. typical $286,628-$1,008,179). Can you provide Item 19 details showing how many units achieved profitability and the average time to profitability for franchisees?

The termination rate of 7.5% exceeds the typical range. What are the primary reasons franchisees are terminated, and how does the franchisor define 'default' under the contract?

The transfer rate of 10.3% is notably higher than typical (0.0-6.35%). Why are franchisees transferring ownership at above-average rates, and what approval process and fees apply to ownership transfers?

Unit closures nearly tripled from 9 in 2022 to 22 in 2024, while terminations more than doubled. What drove these increases, and are there specific geographic regions or unit types experiencing higher failure rates?

The minimum performance standard requires annual gross sales in the top 90% of territories beginning in year two. How is this calculated, what happens if a franchisee falls below this threshold, and what percentage of franchisees fail to meet this requirement?

The contract allows late payment fees of $10 per day plus interest up to 12% annually. How frequently are these penalties assessed, and are there grace periods or remedies before penalties apply?

Operational control requires approval of all products, supplies, and vendors. Can you provide a list of approved suppliers, their pricing relative to market competitors, and whether franchisees can request exceptions or alternative suppliers?

The initial term is only 5 years, requiring renegotiation at year 5. What are the typical terms offered at renewal, and can they be significantly different from the initial agreement?

Personal guarantees are required from all owners with 5% or more ownership. Does this guarantee survive franchise termination or expiration, and for how long?

The one litigation case filed by ShelfGenie in the past 3 years involved what type of dispute, who was the defendant, and what was the outcome?

Non-compete is limited to 2 years and 25 miles. Has the franchisor enforced this clause, and are there cases where franchisees have opened competing businesses after exiting?

The technology fee of $436 is charged separately from royalties. What specific technology does this cover, can franchisees opt out, and how has this fee changed historically?

The contract lists only 10 termination causes, which is below the typical 14-21. What are these specific causes, and are breaches handled differently based on severity?

What is the average investment required to open a ShelfGenie franchise beyond the $35,000 franchise fee, and what does the franchisor provide by way of training, ongoing support, and marketing assistance?

Item 19 mentions encroachment protection despite non-exclusive territories. How does the franchisor define and enforce encroachment restrictions in practice?

The renewal fee is $5,000, and one renewal option exists. What percentage of franchisees successfully renew, and have any franchisees been denied renewal despite meeting all conditions?

Can you explain why the Financial Performance score (40/100) and Contract Terms score (53/100) are significantly below typical ranges, and what specific metrics drove these low scores?

Dispute resolution requires litigation rather than arbitration under most circumstances. Does the franchise agreement include a mandatory mediation step before litigation, and who bears the cost of litigation?

The system grew 10 net units in one year while closure and termination rates increased. Are new franchisees expanding the system faster than existing franchisees are exiting, and what is the retention rate for franchisees past their first 3 years?