The Grout Medic

The franchise fee of $65,000 exceeds typical fees for home services franchises by approximately $5,000-$20,000. What specific services, training, or support justify this premium over competitors?

With a 1-year exit rate of 20.3% and 3-year cumulative turnover of 40%, what do you identify as the primary reasons franchisees are leaving, and what changes have been made to address these issues?

In 2024, 14 units closed representing approximately 20% of the system. Can you provide specific details on whether these closures were voluntary/business-related or resulted from franchisor action?

You have 15 total litigation cases with 3 currently pending. What are the nature and subject matter of these pending cases, and how do they relate to franchisee relations or operational disputes?

The franchisor was defendant in 10 of 15 litigation cases. Can you summarize the key claims or disputes that resulted in the franchisor being sued, and what preventive measures have been implemented?

Median gross sales of $226,408 are approximately $60,000 below the typical range for home services franchises. What is the breakdown between service revenue, material revenue, and other income sources, and how does this compare to top-performing franchisees?

The transfer fee of $20,000 significantly exceeds typical fees in the industry. If a franchisee wishes to sell their unit, does the franchisor have first right of refusal or other rights that could complicate a sale?

With a territory protection designation but non-exclusive territory model, what specific protections prevent the franchisor from operating company-owned units or recruiting competing franchisees within my protected territory?

The non-compete clause covers only 20 miles, which is below the typical 25-40 mile range for home services franchises. Has this narrower radius resulted in issues with former franchisees operating competing services nearby?

With 22 termination causes specified in the agreement (above the typical range), can you provide the complete list and clarify which causes require cure periods versus immediate termination rights?

The franchise agreement requires 10-day cure periods for payment failures and 30-day cure periods for other defaults. If I fall behind on payments due to seasonal business fluctuations, what is the franchisor's history of granting extensions or modifications?

You have 3 pending litigation cases. Can you disclose whether any involve disputes with active franchisees, and if so, what are the primary allegations or claims being made?

What percentage of the 11 closures in 2022 and 14 closures in 2024 were attributable to franchisee profitability issues versus external market factors, and how does this inform your growth strategy?

The renewal conditions require payment of either $15,000 or 25% of the then-current franchise fee. If the franchise fee increases significantly, could a franchisee face renewal costs substantially higher than the current $15,000?

With a current system of 69 units but historical data showing 67 units 3 years ago, what is the system's target growth rate, and are closures slowing or accelerating?

Can you provide a detailed breakdown of the 32 'ceased other' closures over the past 3 years? Were these initiated by franchisees, resulted from franchisor recommendations, or caused by other factors?

The franchise agreement includes a personal guaranty requirement for all principals and spouses. In cases where franchisees exited, were personal guaranties enforced to recover outstanding obligations, and what is the average recovery rate?

Litigation shows the franchisor as plaintiff in 5 cases. What were the subject matters of these cases (e.g., royalty collection, breach of operating standards, IP infringement), and what were the outcomes?

Does the franchisor provide any performance guarantees or buyback programs if a franchisee's unit fails to meet projected financial benchmarks within the first 2-3 years of operation?

What support or remediation options does the franchisor offer to struggling franchisees before pursuing termination, and how many franchisees have accessed these programs in the past 2 years?