Stand Strong Fencing

The franchise grew from 0 units in 2022 to 126 units in 2024—can you provide detailed information on how many of these 126 units are currently operational versus acquired but not yet launched?

Given the 1160% unit growth rate in the past year, what percentage of new franchisees are meeting their financial and operational targets in their first 2 years?

There is 1 pending litigation case with the franchisor as defendant. Can you describe the nature of this case and when it is expected to be resolved?

The franchisor does not charge an advertising fund fee (0%), which is below the typical 1-2% for this industry. How are national and regional marketing initiatives funded?

The median gross sales of $1,308,072 significantly exceed typical home services franchises. Can you provide a breakdown of how many units are achieving this level versus the median, and the distribution of unit sales performance?

Five franchisees transferred their units in 2024. What were the primary reasons for these transfers, and were they to existing or new franchisees?

The franchise agreement requires a minimum monthly royalty of $500 regardless of sales performance. How many units are currently paying only the minimum, and what support is provided to struggling units?

Personal guarantees are required from franchisees, spouses, and principal shareholders. Can you clarify what liabilities these guarantees cover beyond franchise obligations?

The non-compete clause restricts competitive businesses within 25 miles for 2 years post-termination. How is this enforced, and have there been any disputes over this radius in the pending litigation?

The franchise agreement contains 18 non-curable defaults allowing immediate termination without opportunity to cure. Can you provide examples of these defaults and whether any have been invoked against franchisees?

Renewal requires meeting 9 specified conditions. Can you detail these conditions and the percentage of franchisees meeting them at the end of their initial 10-year term?

The renewal fee is $11,900, which equals 20% of the current franchise fee. If franchise fees increase in the future, how will this impact renewal costs?

Territory is protected but not exclusive, and encroachment protection is included. Has the franchisor opened multiple units within the same protected territory, and if so, what is the average territory size per unit?

Late payment fees are 1.5% monthly (18% annually). How frequently do franchisees incur these fees, and what payment performance issues have been observed?

What is the average time from initial franchise purchase to first revenue-generating job for new franchisees?

Can you provide the breakdown of the $965,538 average gross sales by franchisee tenure (first year, second year, etc.) to help project realistic unit performance?

The franchise has 15-day and 30-day cure periods for certain defaults. Can you provide specific examples of defaults in each category and the frequency with which cure notices are issued?

Are there any restrictions on franchisee discounting, pricing, or customer acquisition methods that could impact gross sales performance?

The franchisor reserves the right to establish a Brand Fund per the financial obligations clause. Has this fund been established, what would contributions be, and how would funds be allocated?

Given the franchise's rapid expansion and perfect retention metrics, what is the historical background of this franchise system, and has it previously operated units under a different brand or structure?