Surv

The monthly technology fee of $1,449 is nearly 2-3 times higher than the typical range for home services franchises ($156.50-$599.00). What specific technologies and services does this fee cover, and how is it justified relative to competitors?

Your system has grown from 1 unit in 2022 to 5 units in 2024—a 71% compound annual growth rate well above the typical 0-23.25% range. Is this growth primarily driven by recruitment of new franchisees, or are existing units expanding? What is your target unit growth going forward?

Average gross sales of $1,394,054 exceed the typical range for your franchise type. Can you provide a breakdown of whether this represents high performers or if all 5 current units achieve this level? What is the range of sales performance across your current franchise base?

You report zero terminations, closures, and transfers over 3 years. Given your small unit count (5 current, 1 three years ago), how many franchisees have actually exited the system, if any? What is your average franchisee tenure?

The renewal agreement includes 15 conditions subject to your 'reasonable discretion'—significantly above the typical 6-9 conditions. Can you provide a specific list of these 15 renewal conditions so prospective franchisees understand renewal expectations?

Your franchise agreement includes an 18% per annum interest rate on overdue payments and a minimum monthly royalty requirement regardless of business performance. How often do franchisees encounter these minimum royalty obligations, and what is the typical monthly royalty payment relative to this minimum?

The agreement requires personal guarantees from all owners and spouses with joint and several liability. What percentage of franchisees have had to enforce these guarantees, and under what circumstances?

Your dispute resolution clause mandates mediation and binding arbitration with waivers of class action and jury trial rights. Have any disputes between the franchisor and franchisees gone through this process? If so, what were the outcomes?

Given your rapid growth from 1 to 5 units in 2 years, what is your historical franchisee satisfaction level, and do you have any data on early-stage franchisee performance (years 1-3)?

Your non-compete clause restricts franchisees for 2 years within 25 miles post-termination. Has this restriction been enforced against any former franchisees, and what were the circumstances?

You have a $7,500 renewal fee with a 10-year renewal option. What is your historical renewal rate—have any of your franchisees elected not to renew, and if so, why?

The agreement requires franchisees to 'participate in and co-fund' certain obligations (per financial obligations clause). What are the specific participation and co-funding requirements, and what are typical annual costs beyond the base royalty and technology fee?

How many years has Surv been franchising, and when did your first franchisee open? What is your oldest operating franchisee location?

Your average gross sales of $1.39M is notably high for a home services franchise. What percentage of units achieve this revenue level, what is the median sales figure (if different from average), and what is the lowest-performing unit's revenue?

You report Item 19 financial performance data. Can you clarify whether this includes detailed profit/loss statements, or only revenue figures? What is the average net profit margin across reporting franchisees?

The technology fee of $1,449/month totals $17,388 annually. Can you provide a detailed breakdown of what technologies are included and whether this fee has increased since your initial franchises opened?

Given the small number of current units (5), how representative are your average sales figures? Are all 5 units generating approximately $1.39M, or is this heavily weighted by one or two high performers?

What specific training and ongoing support does the $1,449 monthly technology fee include? Is this separate from or inclusive of other support services mentioned in the franchise agreement?