The franchise fee is marked lower than typical for the category—how does The Designery support franchisees with training and operational support at this investment level compared to competitors?
#1
Unit growth increased 247.6% in the past year (21 to 73 units). What is the target growth rate for the next 3 years, and how will the franchisor ensure quality control and market saturation doesn't occur?
#2
Gross sales of $1,349,579 are above typical for this category. What is the range of reported sales performance across franchisees, and what percentage of franchisees achieve or exceed this median figure?
#3
The contract specifies 28 termination causes—approximately double the typical range. Which termination causes are most commonly cited, and can you provide examples of franchisees terminated under specific clauses?
#4
Renewal requires meeting 10 specified conditions. What is the historical renewal rate percentage, and what conditions do franchisees most frequently fail to meet?
#5
There is 1 pending litigation case with the franchisor as plaintiff. What is the nature of this case, current status, and anticipated resolution timeline?
#6
The territory is protected but not exclusive. How does the franchisor define 'encroachment,' and has The Designery added units within existing franchisees' territories?
#7
The non-compete is 2 years within 25 miles post-termination. How aggressively does The Designery enforce this clause, and what disputes have arisen regarding its scope?
#8
Transfer fee is $10,000 and renewal fee is $5,000. Are there additional fees associated with renewal such as retraining, facility upgrades, or technology updates required to maintain certification?
#9
All early unit data shows zero units in 2022 and only 4 in 2023. What was the exact launch date, and why did growth accelerate dramatically in 2024?
#10
The franchisor retains conditional pricing control with designated suppliers in 5 categories. What is the margin impact of these supplier arrangements, and can franchisees negotiate pricing directly?
#11
Personal guarantees are required from franchise owners and their spouses. If a franchisee defaults, has The Designery pursued collections against spouse guarantors, and with what frequency?
#12
Disputes must be arbitrated before one AAA arbitrator in Mecklenburg County, North Carolina. How many arbitration cases have been filed in the past 3 years, and what were the outcomes?
#13
The franchise has only 73 current units. What is the franchisee satisfaction rating, and can you provide references from franchisees at different stages (0-1 year, 1-3 years, 3+ years)?
#14
Operational hours and days are controlled by the franchisor. What flexibility exists for franchisees to adjust schedules for local market conditions or seasonal demand?
#15
Technology fee is $599 annually. What specific technology solutions are included, and are there additional software, website, or digital marketing fees beyond this amount?
#16
With zero non-renewals recorded, have any franchisees elected not to renew, and if so, why? What percentage of franchisees have chosen to exit rather than renew at the end of their initial term?
#17
The system shows 1 closure, 1 termination, and 1 transfer in 2024. Were any of these exits due to market saturation, inadequate training, or franchisor operational issues?
#18
The transfer fee is $10,000. What approval process does the franchisor use for transfers, and have any transfer requests been denied?
#19