The Junkluggers

Can the franchisor provide detailed information on the 21 units that 'ceased other' in 2024? What specific circumstances led to these exits?

Why did closures spike to 24 units in 2024 compared to 8-10 units in 2022-2023? What changes in market conditions, operations, or company policy may have contributed?

The advertising fund rate of 3.0% exceeds the typical range of 1.0-2.0% for home services franchises. How is this fund allocated, and can the franchisor provide historical spending reports and ROI metrics?

With 25 termination causes listed in the contract versus the typical 14-21 range, what are the 4 additional non-curable default provisions beyond standard defaults?

The non-compete clause covers the territory, a 40-mile radius, and any zip code where the business served customers. How has the franchisor enforced this in practice, and are there documented cases of franchisees challenging this geographic scope?

Can you provide specific examples of the 11 renewal conditions required for the 10-year renewal term? What percentage of franchisees historically fail to meet renewal requirements?

The renewal fee is $5,000 and requires mandatory remodeling to current brand standards. What is the typical cost of this remodeling, and how is it calculated or estimated?

What is the average annual revenue and profitability for units in the system? Does Item 19 data distinguish between top-performing units and those that exited?

Given the 15.9% annual exit rate, what is the average lifespan of a franchised unit, and what are the primary reasons franchisees report for exiting?

Can the franchisor provide a breakdown of the 13 net unit growth over the past year? How many were new franchise sales versus transfers from exiting franchisees?

The mandatory arbitration clause requires JAMS arbitration with class action and jury trial waivers. What has been the average cost and timeline for arbitration disputes, and how many have occurred?

The franchisor requires unlimited personal guarantees from all owners with 5% or greater equity interest. How is this enforced in practice, and what happens to franchisees' personal assets in case of default?

What training and support programs exist for franchisees, and why does the Support & Training score (76/100) fall below the typical range of 79-90?

Can you explain the risk factors that contributed to the Risk Factors score of 56/100, which is below the typical range of 58-76?

What is the franchisor's policy on encroachment? Has the franchisor ever placed units within the 40-mile exclusive territory of existing franchisees?

How does the technology fee of $350/month align with what competitors charge? What systems and services are included?

If a franchisee is terminated for cause, what support or transition assistance does the franchisor provide, and are there escrow or security deposit provisions?

Can the franchisor provide financial performance data comparing units that have survived 3+ years versus those that exited within the first 1-2 years?

What ongoing operational control does the franchisor exercise through equipment, inventory, and supply specifications? Are franchisees required to purchase exclusively from franchisor-approved vendors?