The royalty rate of 10.0% exceeds the typical 6.0%-8.0% range for landscaping franchises. What justification does the franchisor provide for this higher rate, and are there any circumstances where it could be negotiated?
#1
What caused the spike of 4 unit closures in 2023 compared to zero closures in 2024? Were these closures voluntary or franchisor-initiated?
#2
The 2023 data shows 2 units marked as 'Ceased Other' in addition to 4 closures and 2 terminations. Can you clarify what 'Ceased Other' means and the circumstances behind those exits?
#3
The Ongoing Fees score of 57/100 is below the typical 62.0 for this category. Can you provide a detailed breakdown of all fees franchisees pay beyond royalty and ad fund, including any regional advertising or system charges?
#4
How many of the 5 transfer requests in 2024 were approved without issue, and what criteria does the franchisor use to approve or deny transfer requests?
#5
The dispute resolution clause requires litigation in Illinois (Plainfield) and waives jury trials. What is the estimated cost for a franchisee to litigate a dispute under these terms, and has the franchisor pursued litigation against franchisees historically?
#6
All franchisees must provide personal guarantees with spouse consent required. Can you explain what obligations are covered by this guarantee and whether it extends to franchisee business debts beyond the franchise agreement?
#7
Late payment interest is 1.5% per month (18% annually). How often do franchisees incur late payments, and what is the typical reason for payment delays?
#8
The renewal conditions require 7 compliance criteria for renewal eligibility. Can you provide the complete list of these 7 conditions and examples of franchisees who failed to meet them?
#9
The territory is exclusive with encroachment protection, but the non-compete is 2 years with no mileage radius specified. What does the franchisor consider as encroachment if a former franchisee operates within 1 mile after their 2-year non-compete expires?
#10
Item 19 shows a median gross sales of $886,680 and average of $1,093,544. What percentage of franchisees fall below the median, and what are the typical revenue ranges by market size or territory type?
#11
How many of the 156 current units were multi-unit franchisees, and what percentage of system growth came from single-unit versus multi-unit operations?
#12
The system grew from 154 units (3 years ago) to 156 current units. How many of the 4 net unit growth in the past year came from new franchisees versus transferred units?
#13
You have zero litigation cases recorded, but with 156 franchisees over 3 years, how does the franchisor handle disputes before they escalate to formal litigation?
#14
The Financial Performance score of 68/100 is above the typical 60.0 range. Does Item 19 include all franchisees or only a subset, and are there performance exclusions (e.g., newly opened units)?
#15
What training and ongoing support does the $235 annual technology fee provide, and can franchisees opt out of this fee?
#16
Regional advertising charges are mentioned as applying late payments. Can you provide the typical annual regional advertising cost and how it is calculated?
#17
The 2.0% ad fund rate is standard, but is this a national fund used for national advertising, or does it go to regional/local marketing controlled by area developers?
#18