The transfer fee of $17,000 is above the typical range for this category. What specific services or support does this fee cover, and is it fully refundable if the transfer is denied?
#1
Your initial contract term of 15 years is significantly longer than the typical 5-10 year range for cleaning franchises. What is the rationale for this extended term, and what are the exit provisions if a franchisee needs to leave before the 15 years expire?
#2
The non-compete radius of 10 miles is narrower than the typical 21-50 mile range. How is compliance monitored, and what happens if a franchisee opens a competing business within this radius after exiting?
#3
Your Support & Training score of 65 falls below the typical range of 76-90. Can you provide specifics on ongoing training frequency, field support visits per year, and how support evolves from year 1 to mature operations?
#4
You have minimum gross revenue requirements of $50,000 in year 1 and $100,000 in year 2. What percentage of current franchisees meet these targets, and what happens if a franchisee falls short in either year?
#5
Late payments carry 18% annual interest. Is this rate negotiable, and at what point does a payment trigger termination proceedings?
#6
You require 30 days to cure material violations beyond payment defaults. Can you provide a detailed list of the 7 non-curable defaults and explain how disputes over whether a violation is 'curable' are resolved?
#7
Your net unit growth of 14.52% in the past year significantly exceeds the typical range. Is this growth organic through new franchisee recruitment, or does it include acquisition of existing units? What is your growth projection for the next 3 years?
#8
Binding arbitration is required in Minneapolis, Minnesota. What is the typical cost of arbitration, and are there any circumstances where a franchisee can pursue litigation in their home state or federal court?
#9
You report zero litigation cases over 3 years. Can you confirm this includes all disputes resolved through arbitration, mediation, or settlement, or does this only count formal lawsuits?
#10
Personal guarantees are required from the franchisee, spouse, and all ownership holders. Are there any scenarios where the spouse's personal guarantee can be limited or waived?
#11
Your Item 19 disclosure is available. Can you provide specific data on average unit volumes, gross profit margins, and failure rates broken down by year in operation and geographic region?
#12
The renewal fee is $1,500 for a 5-year renewal term. Does this fee apply to both renewal options, and are there any conditions under which renewal can be denied?
#13
Territory is protected but non-exclusive. How many franchisees currently operate in overlapping territories, and what mechanisms exist to prevent franchisor-authorized encroachment?
#14
You have 12 termination causes (below the typical range of 14-22). What specific performance metrics or behaviors trigger immediate termination without a cure period?
#15
Three units closed or were terminated in 2024 out of 71 total (4.2% exit rate). What were the primary reasons for these exits, and do current franchisees understand the most common failure factors?
#16
System Health scores above typical range at 80/100, yet Support & Training scores below at 65/100. What explains this gap, and how are you addressing training deficiencies?
#17
The technology fee of $150/month appears separate from your royalty and ad fund. What specific software, tools, or services does this cover, and can franchisees use third-party alternatives?
#18
Investment score of 81 is above typical range. Does this reflect lower startup costs than competitors, and what is included in the stated $50,000 franchise fee?
#19