Surface Specialists

The system has declined from 48 to 44 units over 3 years with 11.4% of units closing in 2025 alone. What specific market conditions or operational challenges drove the acceleration in closures, and what is the franchisor doing to stabilize unit retention?

Median gross sales of $132,416 significantly underperform the category typical range of $286,628-$1,008,179. Are these sales figures representative of newer units still ramp-building, and what is the typical timeline for units to reach profitability?

The contract specifies minimum performance standards of $30,000 in gross receipts within 12 months, increasing 15% annually. How many of the 5 units that closed in 2025 failed to meet these minimum thresholds, and at what point would this trigger termination?

With a System Health score of 19 (significantly below the typical 50.0-70.0 range), what specific operational or financial challenges is the franchisor addressing, and how is support being enhanced?

The franchise fee of $36,000 is 20-36% lower than typical range competitors. Does this lower entry price correlate with reduced support, territory quality, or brand strength compared to competitors?

Can you provide detailed breakdowns of the 5 units that exited in 2025 - specifically, how many closed voluntarily, how many were franchisor-terminated for non-performance, and what were the primary stated reasons for each?

The contract requires personal guarantees from all owners and spousal non-compete agreements for married franchisees. How strictly is this enforced if a franchisee needs to exit, and what happens to the spouse's restrictions post-exit?

With binding arbitration required and a 60-day mandatory mediation period before court action, what is the average timeline and cost franchisees have experienced in resolving disputes with the franchisor?

The post-term non-compete is 2 years within 25 miles. Given that most units are generating median sales of only $132,416, is this restriction enforceable and have there been disputes over its application?

Interest charges up to 18% per annum apply to late payments. In the past 3 years, how frequently have franchisees fallen behind on royalty or ad fund payments, and what is the franchisor's collection rate?

Average gross sales ($296,405) significantly exceed median gross sales ($132,416), indicating wide performance variance. What is the sales range across your 44 current units, and what percentage fall below the $30,000 first-year minimum threshold?

The renewal conditions count (5) is below typical (6-9). What are the specific conditions required for a franchisee to renew at the 10-year mark, and are there significant increases in fees or equipment costs at renewal?

With a 5.0% royalty rate (below typical 6.0-7.0%), how does this lower ongoing fee structure impact franchisor support, training, marketing fund size, and technology platform development?

The Turnover & System Data section shows a termination rate of 0.0%. Does this mean no franchisees have been terminated for cause, or are exits classified under 'closed' or 'ceased other' categories instead?

Item 19 financials are available - can the franchisor provide additional context on whether the reported sales figures include or exclude material costs, and what the typical profit margin ranges from $132K to $296K in gross sales?

The system has no litigation history. Can the franchisor explain whether this reflects strong franchisee satisfaction or if there are alternative dispute resolution patterns (arbitration outcomes, mediation settlements) not captured in public records?

Given the accelerating closure rate and below-average financial performance, what specific initiatives or franchise system changes are planned for 2026 to improve unit viability and retention?

The transfer fee of $5,000 is substantially lower than typical ($7,500-$15,000). What is included in this fee, and are there additional hidden costs associated with transferring a franchise to a new owner that should be factored in?