Given the franchise has only 5 units currently, how representative are the financial performance figures (average gross sales of $401,285) of typical unit performance, and what is the range of performance among existing franchisees?
#1
Your royalty rate of 7.5% exceeds the typical range for home services franchises. How was this rate determined, and is it negotiable for multi-unit operators or based on performance metrics?
#2
The technology fee of $95/month is below typical for the category. What specific technology services and support does this fee cover, and are there additional technology costs or requirements?
#3
Your non-compete radius of 50 miles is above the typical 25-40 mile range. What is the business justification for this broader radius, and how is it enforced?
#4
The total potential contract term of 30 years (10 initial + 2 x 10 renewals) significantly exceeds the typical 15-20 year range. What are the specific renewal conditions franchisees must meet, and how frequently are renewals denied?
#5
With zero litigation cases on record, can you explain the dispute resolution process detailed in your franchise agreement, including the requirement for binding arbitration in Cobb County, Georgia?
#6
Your system shows exceptional unit growth (150% in 1 year) with zero exits. What factors are driving this growth, and are there pipeline franchisees whose units are not yet counted in the current 5-unit total?
#7
Given the franchise is in early growth stages, what is your historical experience with franchisee satisfaction and retention in your previous franchise concepts, if any?
#8
Can you provide the complete financial performance data from Item 19, including the number of units reporting, median sales, and profitability metrics by unit age?
#9
The transfer fee equals the renewal fee at $10,000 each. Are there circumstances where these fees are waived or reduced, and what approval process is required for unit transfers?
#10
With only 5 franchisees, how do you gather franchisee feedback and make operational decisions, and do you have a franchisee advisory council?
#11
Your contract includes renewal conditions but provides fewer conditions (3) than typical (6-9). What specific conditions must franchisees meet to earn renewal, and what happens if they are not met?
#12
Does the 2-year, 50-mile non-compete apply if a franchisee's renewal is denied, and are there any buyout or modification options?
#13
Since territory is non-exclusive but protected, under what circumstances would the franchisor place another franchisee near an existing one, and how would this be handled?
#14
What is the current state of franchisor support and training infrastructure given the system's early stage, and how will this scale as the network grows?
#15
Can you provide references from each of your current 5 franchisees, including their years in operation, actual revenue, and satisfaction with the franchise system?
#16