Superior Walls

The reported gross sales figures (median $134.12, average $136.89) appear significantly lower than industry norms for home services franchises—can you clarify whether these figures are in thousands or if there is a reporting error in the Item 19 disclosure?

What are the specific circumstances surrounding the 1 case filed against the franchisor that remains pending, and what is the expected timeline for resolution?

Can you provide detailed information about the 1 unit that was terminated by the franchisor in 2024, including the specific breach or performance issue that led to termination?

The termination rate of 7.7% exceeds typical benchmarks—how many franchisees have been terminated for performance reasons versus other causes in the past 3 years, and what are the most common termination triggers?

The franchise fee of $225,000 significantly exceeds the typical range for your category ($45,000-$59,900)—what specific value or services justify this premium fee structure?

Given the exclusive territory protection and 60-mile non-compete clause, how does the franchisor manage potential encroachment issues, and have there been any encroachment disputes in the past 3 years?

The financial performance data shows that even top-quartile units generate significantly lower revenue than industry averages—what are the primary factors contributing to these lower sales volumes, and what is the franchisor's strategy to improve unit economics?

Can you provide an itemized breakdown of all initial investment costs beyond the $225,000 franchise fee, including equipment, inventory, working capital, and other startup expenses?

The total potential contract term of 30 years is above typical for your category—what specific conditions or performance metrics must a franchisee meet to successfully renew at the 10-year and 20-year marks?

The financial obligations section references minimum performance standards for gross sales and linear feet installed with potential territory reduction for underperformance—what are these specific thresholds, and how frequently have territories been reduced?

Late payment interest is noted at 18% per annum—how frequently do franchisees fall behind on payments, and what is the typical remediation process before legal action is considered?

You require personal guarantees from all owners on the franchise agreement—have any franchisee guarantors been personally liable for debt or obligations beyond the initial franchise fee?

The 2 transfers in 2023 suggest relatively low unit transferability—what is the franchisor's approval process for transfers, and what percentage of transfer requests are denied?

Given the 4.0% royalty rate is below industry typical range, are there any performance-based incentives or graduated royalty structures that could increase franchisee costs?

Can you explain the specific financial metrics and sales data underlying the Financial Performance score of 40/100, and what threshold would constitute acceptable performance?

The pending litigation case—is this case materially impacting franchisor operations or franchisee obligations, and what is the potential financial exposure?

The system has grown from 11 to 13 units over 3 years—what is the franchisor's growth strategy, and how aggressively is it recruiting new franchisees given the modest unit count?

With 13 total units, how is support and training scaled, and what specific support services justify the 95/100 Support & Training score?