The franchise fee of $65,000 is significantly higher than the typical range of $20,000-$40,000 for real estate franchises. What specific services, training, and support justify this premium pricing compared to competitors?
#1
Your 1-year turnover rate of 15.4% and 3-year turnover rate of 34.5% both exceed typical ranges. What analysis has been conducted on why these franchisees exited, and what specific actions are being taken to reduce turnover going forward?
#2
Unit closures and terminations totaled 8 units in 2022 and 12 in 2023, but dropped to zero in 2024. What operational or market changes drove this improvement, and is this sustainable?
#3
Median gross sales of $58,831 fall below the typical range of $84,476-$324,443. How representative is the average of $416,518, and what percentage of franchisees achieve the higher performance levels?
#4
The royalty rate of 5.0% is below the typical range of 5.25-7.0%, but you have a minimum monthly royalty. What is the specific minimum monthly amount, and at what revenue level does a franchisee break even between the percentage royalty and minimum?
#5
Your contract specifies the minimum monthly royalty is 'the greater of 5% of gross revenue or applicable minimum monthly royalty amount.' Can you provide the specific dollar minimum amounts by year for the first 5 years?
#6
The post-term non-compete restricts competitive activity for 2 years 'anywhere in the territory or territory of any other SkyRun business in the United States.' How many SkyRun territories exist, and could this effectively restrict a franchisee from operating within their state?
#7
Zero franchisor terminations are reported despite 6 terminations in 2023 and 4 in 2022. Were these voluntary non-renewals by franchisees, or franchisor-initiated terminations recorded differently? Please clarify the distinction.
#8
Your system shows strong growth (23.08% net unit growth in 1 year and 18.29% CAGR over 3 years), yet above-typical turnover rates. Are new unit sales outpacing exits, and are new franchisees more successful than earlier cohorts?
#9
Item 19 financial data shows median gross sales substantially below average ($58,831 vs. $416,518). What percentage of franchisees fall below, at, or above the median, and what factors distinguish high performers?
#10
With 4 renewal conditions (below the typical range of 5-8), what specific conditions must franchisees meet to renew after the initial 10-year term, and are there examples of non-renewals?
#11
Late payment penalties are 1.5% monthly interest (18% annually). How frequently do franchisees incur these penalties, and has this been a material issue in the system?
#12
The dispute resolution clause requires binding arbitration in Denver, Colorado with mandatory 4-hour mediation first and prohibits class actions. Have any franchisees challenged this clause, and what is the average cost and timeline for arbitration cases?
#13
Personal guarantees are required from all owners with unlimited scope and joint-and-several liability. Can you provide examples of situations where the franchisor has enforced personal guarantees against individual owners?
#14
Your System Health score is 75, above the typical range of 35-64. What specific factors contributed to this elevated score, and does it reflect longer-term franchisee retention or other metrics?
#15
Transfer rate of 7.3% significantly exceeds the typical range of 0.0-2.2%. Are these transfers driven by franchisee requests for succession planning, or franchisor-approved strategic consolidation?
#16
Territory is marked exclusive with 100% score in this category. How is territory defined (geography, radius, population, etc.), and are there any instances where disputes arose over territory encroachment or definitions?
#17
With zero litigation cases in 3 years, have there been informal disputes or complaints filed with state franchise regulators? Are there pending regulatory investigations?
#18
The contract specifies 13 termination causes (below the typical range of 15-20). What are the primary termination triggers, and which are most commonly cited in practice?
#19
Your renewal fee is $5,000 for another 10 years. Are there any conditions or performance requirements that would prevent renewal, or is renewal essentially automatic upon payment of the fee?
#20