Silbar Security

Given the monthly technology fee of $1,000 is 2-10 times higher than typical for this category, what specific technology services and platforms are included, and can you provide a detailed breakdown of how this fee is justified relative to competitors?

Can you explain the circumstances behind the 3 unit exits in 2023 (2 closures, 1 termination)? Were these franchisor-initiated terminations or franchisee-initiated departures, and what were the primary reasons?

With a 22.2% transfer rate substantially exceeding the typical range, what factors are driving franchisees to transfer their units? Are there specific performance or profitability issues that make units difficult to operate?

The termination rate of 11.1% is nearly 3 times higher than typical for business services franchises. How many of these 1 termination in 2023 were franchisor-initiated versus franchisee-requested, and what were the primary violation categories?

Why does the contract offer only a 5-year total potential term compared to the typical 10-20 year range for business service franchises? Are renewal options negotiable, and under what conditions would a franchisee be eligible to renew?

The franchise requires escalating minimum sales performance from $100,000 (year 1) to $500,000 (year 5+). How many current units are meeting these thresholds, and what happens to territorial rights if a franchisee falls below these minimums?

With no stated renewal options in the disclosure, how are renewal decisions made at the end of the 5-year term? What percentage of franchisees have been renewed versus non-renewed historically?

Can you provide specific details on the 4 renewal conditions referenced in the contract? Are these conditions more restrictive than competitor franchises in the security services space?

The royalty rate of 5.0% is below typical (6.0-10.0%). Are there any volume-based increases or tiered structures that would raise royalties for higher-performing units?

What recourse do franchisees have if they believe the $1,000 monthly technology fee is excessive or if service quality is inadequate? Is this fee modifiable or negotiable?

How does the non-compete clause (2 years / 25 miles) apply if a franchisee's unit is terminated by the franchisor versus voluntarily exiting? Are there any exceptions for good-standing franchisees?

Given the protected but non-exclusive territory, how does the franchisor define and enforce encroachment protection? What specific complaints have been filed and resolved regarding competitive proximity?

The 2023 unit data shows 2 closures (not terminations). Can you provide the business names, closure dates, and stated reasons for these closures—were they voluntary shutdowns or franchisor-forced closures?

Are there any pending litigation cases or regulatory complaints not yet filed that prospective franchisees should be aware of? How is the franchisor managing any disputes in arbitration?

For franchisees subject to binding arbitration (Illinois, Maryland, Washington residents), what are the typical costs and timelines for dispute resolution? Can you provide examples of past arbitration cases and outcomes?

The franchise requires personal guarantees from franchisees but not spouses. If a franchisee defaults, how aggressively does the franchisor pursue personal liability, and are there payment plans available?

What is the current composition of the 9 operating units—how long have they been operating, what are their individual sales volumes, and do they all meet the escalating performance minimums?

Can you explain the gap between the 11.1% termination rate and the actual termination data (only 1 termination in 2023)? Is this rate calculated differently or projected forward?

If a franchisee wants to exit before the 5-year term ends, what penalties apply beyond the $15,000 transfer fee? Are there lease obligations, inventory buyback requirements, or other costs?

The high support and training score (95/100) is above typical. What specific training, ongoing support, and operational assistance should a franchisee expect, and are these services included in the $1,000 tech fee or charged separately?