The franchise fee of $9,900 is significantly lower than the typical $20,000-$40,000 range for real estate service franchises—what is included in this lower initial investment, and are there mandatory purchases or training costs not reflected in the stated fee?
#1
Your advertising fund rate of 4.0% exceeds the typical 1.0-3.0% range—how is this fund allocated, what specific marketing activities does it support, and can you provide documentation of how it was spent over the past 12 months?
#2
The transfer fee of $25,000 is 2.5x higher than the typical range of $5,000-$10,000—what services and franchisor involvement justify this premium transfer fee, and is this fee negotiable or non-refundable?
#3
Your system experienced a 9.1% termination rate in the past year (1 of 11 units)—what were the specific reasons for this termination, and were there documented default violations or operational disputes?
#4
Your system grew 175% from 4 to 11 units in one year—how sustainable is this growth, what is your target unit count, and what is the pipeline of signed franchise agreements versus units currently operating?
#5
Reported gross sales median of $82,937 is below the typical $84,476.50-$324,443.0 range—are these figures derived from a complete, audited Item 19 disclosure, how many franchisees are included in this data, and what were the top and bottom performers' revenue ranges?
#6
Your contract terms score of 53/100 is below the typical 55.75-70.0 range—which specific contract provisions are most favorable to the franchisor, and what negotiation flexibility exists on renewal fees, termination notice periods, or non-compete terms?
#7
The franchise agreement requires binding arbitration in Clark County, Nevada, and includes class action waivers—what is the typical cost to pursue arbitration disputes, and can franchisees choose alternative dispute resolution methods or venues?
#8
Your agreement includes 20 non-curable default events with immediate termination rights—can you provide a complete list of these events, and are there any related to sales performance, market conditions, or other factors outside a franchisee's direct control?
#9
Personal and spousal guarantees are required—can you clarify what specific obligations each guarantor bears, whether guarantees survive contract termination, and if there are any limitations on franchisor enforcement against guarantors?
#10
The post-term non-compete restricts participation in 'any real estate marketing business' for 24 months within 50 miles—how broadly does 'real estate marketing' extend, and have any franchisees challenged this restriction as overly broad?
#11
Renewal requires payment of $9,900 per 50,000 dwellings plus fees for completion of training programs—how are the number of dwellings calculated, and what is the average total renewal cost in practice for franchisees in your system?
#12
The system requires purchasing equipment, inventory, and services from designated suppliers—can you provide a list of approved vendors, typical annual supply costs for an average franchisee, and whether the franchisor receives rebates or revenue from these vendor relationships?
#13
You report 0 litigation cases over 3 years despite rapid growth and a 9.1% termination rate—have there been any disputes resolved through arbitration (which would not appear in litigation records), and can you confirm this zero-litigation claim?
#14
Territory is protected but not exclusive—how does the franchisor define and enforce territory boundaries, and has the franchisor ever placed additional franchisees or company-owned units within existing franchisee territories?
#15
Your system has only been operating since 2021 with 11 current units—what percentage of initial franchisees from 2022 are still actively operating, and can you provide contact information for at least 5 franchisees operating for at least 12 months?
#16
Item 19 financial performance data is available—does it include only continuing franchisees, and are breakdowns provided by region, experience level, or franchisee investment level?
#17
The technology fee of $50/month is below the typical range of $53.75-$393.75—what technology systems does this cover, and are there additional technology costs or platform fees assessed separately?
#18
With a non-renewal rate of 0.0% and a termination rate of 9.1%, how many franchisees chose not to renew versus being terminated, and what were their stated reasons for exit?
#19
Your contract scores 53/100 on contract terms and 60/100 on ongoing fees, both below typical ranges—are you open to negotiating specific contract terms with new franchisees, or is the agreement a non-negotiable standard form?
#20