Can you explain the specific circumstances surrounding the 2 unit closures in 2022 and 2024? What were the primary business challenges franchisees cited?
#1
With only 2 units currently operating, what is the franchisor's growth strategy and timeline for expanding the system?
#2
Why is the Franchise Fee of $69,000 set significantly higher than the typical range of $20,000-$40,000 for Real Estate Services franchises?
#3
How is the $400/month Technology Fee structured, and what specific technology and services does it provide to franchisees?
#4
Given the System Health score of 0/100, what operational, training, or support changes has the franchisor implemented to address system performance issues?
#5
The Transfer Fee of $20,000 is double the typical range. What is included in this fee, and how is it justified?
#6
Can you provide detailed financial performance data for the current 2 operating units, including gross sales, profit margins, and year-over-year performance?
#7
The Initial Term of 12 years is longer than typical. What is the rationale for this extended commitment, and are there early exit provisions?
#8
With a Renewal Conditions Count of 4 (below typical 5.0-8.0), what are the specific conditions for franchise renewal at the end of the 12-year term?
#9
Why does the contract specify only 7 Termination Causes (below the typical 15.0-20.0)? What circumstances would allow the franchisor to terminate a franchise agreement?
#10
Given the personal guarantee requirement in the franchise agreement, what recourse options would a franchisee have if the franchisor makes unilateral operational decisions that negatively impact performance?
#11
What training and ongoing support does the franchisor provide, and how is this support differentiated given the Support & Training score of 70 (below typical 71.0-78.5)?
#12
Can you provide references from the 2 current franchisees, and would they be willing to discuss their profitability and satisfaction?
#13
What encroachment protection mechanisms are in place, and has the franchisor encroached on any franchisee territories in the past 3 years?
#14
Are there any pending legal disputes, regulatory investigations, or complaints filed with state franchise regulators that are not reflected in the litigation history?
#15
How does the franchisor calculate the 6.0% royalty rate and 2.5% Ad Fund rate, and can you provide transparency on how ad fund dollars are allocated and audited?
#16
Given the very low Investment score of 0/100, what are the total capital requirements beyond the $69,000 franchise fee to open and operate a Storage Authority franchised unit?
#17
The Non-Compete clause specifies 1 year / 5 miles post-termination. Would this restriction apply if the franchise terminates due to franchisor default or non-performance?
#18