What were the specific reasons given for the 30 voluntary closures over the past 3 years, and were unit owners citing profitability issues, market saturation, or other factors?
#1
Given that only 1 unit has been terminated in the past 3 years while 30 have closed voluntarily, what support or intervention does the franchisor provide to struggling units before closure?
#2
The median gross sales of $52,686 are significantly below the typical range for Business Services franchises. Can the franchisor provide Item 19 data showing what percentage of units achieve profitability at these revenue levels?
#3
Can you explain the 6 litigation cases over 3 years, including the 4 cases where the franchisor was defendant and the 2 cases initiated by the franchisor?
#4
What is the average annual net income for franchisees after accounting for the 10% royalty, 3% ad fund, and $125 monthly technology fee?
#5
The ad fund rate of 3% is above the typical range for Business Services franchises. How is this ad fund allocated, and can franchisees request an accounting of ad fund expenditures?
#6
With 22 termination causes listed in the franchise agreement (above the typical range), which specific causes have been most frequently used to terminate franchisees in the past 3 years?
#7
Are there restrictions on franchisor's ability to add additional termination causes or modify existing ones during the renewal of a franchise agreement?
#8
The System Health score is 0/100. What specific metrics or benchmarks define system health, and what would need to change for this score to improve?
#9
Can you provide contact information for a sample of franchisees who closed in the past 3 years so I can understand their experiences and reasons for exit?
#10
The binding arbitration clause requires a three-arbitrator panel. What is the typical cost to franchisees for arbitration proceedings, and who bears these costs?
#11
Given the personal guarantee requirement covering all franchisee obligations, what recourse or liability limits exist if the franchisor pursues personal assets in case of default?
#12
What training and ongoing support are provided to help franchisees generate sales beyond the $52,686 median, particularly to reach the $179,748 top quartile performance level?
#13
Are there any territories with higher closure rates or lower sales performance, and would the franchisor disclose this geographic data for my proposed territory?
#14
The 2-year, 15-mile non-compete appears standard, but does this restrict franchisees from working in related business services fields (e.g., consulting, coaching) after exit?
#15
With a $15,000 transfer fee and declining unit count, what is the franchisor's policy if a franchisee cannot locate a qualified buyer during the franchise term?
#16
Are there any class action lawsuits or regulatory investigations currently pending against the franchisor that are not reflected in the 3-year litigation count?
#17
Given that Risk Factors score is 26/100 (well below typical range), what specific risks does the franchisor identify in its Item 4 risk disclosures?
#18
Can the franchisor provide data on how many units have been able to renew their franchise agreement after the initial 5-year term, and on what terms?
#19