Stratus Building Solutions

What is the status and nature of the 1 pending litigation case against the franchisor, and what impact might it have on franchisee operations or obligations?

Can you provide details on the 3 other closed litigation cases where the franchisor was defendant, including the allegations, outcomes, and whether any resulted in policy or agreement changes?

The franchise fee of $75,000 is 25-150% higher than competitors in this category. What specific services, training, or support justify this premium pricing compared to other cleaning franchises?

At 3.0%, your royalty rate is significantly below the industry standard of 6.0%-8.13%. Is this rate locked for the franchise term, and are there circumstances under which it could increase?

The transfer fee of $25,000 is substantially higher than typical transfer fees of $5,500-$15,000. What does this fee cover, and are there any circumstances where it could be waived or reduced?

Your system shows zero terminations over 3 years. Can you describe the circumstances under which the franchisor would terminate a franchise agreement, and how frequently this has occurred historically beyond the current measurement period?

The non-compete clause extends 100 miles and 2 years post-exit, more than double the typical radius. What business activities are restricted under this clause, and how strictly is it enforced?

Item 19 shows median gross sales of $2.9M, significantly exceeding industry norms. What is the composition of this revenue (e.g., commercial vs. residential, recurring vs. one-time contracts), and how representative is this figure across all franchise units?

The franchise term can extend to 45 years through renewals. Are renewal terms and fees guaranteed, or are they subject to renegotiation? What percentage of franchisees historically renew their agreements?

With an exclusive territory and 15-year initial term, how is territory size determined, and what metrics ensure the territory is sufficiently sized to achieve the projected financial performance?

Can you explain the discrepancy between the low royalty rate and the above-average financial performance figures? Are there other revenue streams for the franchisor or additional fees not captured in the royalty rate?

What training and ongoing support justify the Support & Training score of 95/100 (above typical range)? Please provide specific details on initial training duration, field support frequency, and continuing education programs.

The 1 case filed in the past 3 years—is it still active, what is its status, and what was the nature of the claim?

Are there any pending disputes with current or former franchisees that haven't yet resulted in formal litigation but may indicate operational or contractual issues?

The system has grown from 55 to 67 units in 3 years. What percentage of this growth comes from new franchisee recruitment versus organic expansion (additional locations by existing franchisees)?

Given the mandatory personal guarantees and spouse liability clauses, what recourse do franchisees have if the franchisor fails to perform its contractual obligations?

All disputes go through mediation and binding arbitration with class action prohibition. In the 4 litigation cases, were all disputes handled through this arbitration process, and if so, what were the outcomes?

The 15-month cure period minimum seems short for certain defaults. Can you provide examples of the 15 specific non-curable defaults and the typical circumstances that trigger immediate termination?

How does the $450 monthly technology fee compare to competing systems, and what specific technology platforms and tools are included in this cost?