Can you provide details on the single unit transfer that occurred in 2024? What were the circumstances and was it voluntary or franchisor-initiated?
#1
The transfer rate of 11.1% is above typical for senior care franchises. How frequently do franchisees typically transfer their units, and what is the franchisor's approval process for transfers?
#2
Your franchise fee of $99,500 is approximately 76% higher than the category typical range of $49,500-$56,500. What additional value or services justify this premium pricing?
#3
The royalty rate of 7.0% is above the typical 5.0-6.0% range. What specific services and support does this royalty fund, and how is it calculated or applied?
#4
Your monthly technology fee of $500 is above the typical range of $141-$439.50. What technology systems and services are included, and can franchisees opt out or negotiate this fee?
#5
The transfer fee of $25,000 exceeds the typical range by approximately 3%. Under what circumstances is this fee charged, and is it negotiable?
#6
Your non-compete radius of 5 miles is significantly narrower than the typical 20-46 mile range. How does this limited radius protect both franchisees and the franchisor from market overlap?
#7
Territory is marked as protected but not exclusive. Can you clarify what encroachment protections are provided, and under what circumstances the franchisor might allow another franchisee to operate nearby?
#8
With only 9 current units and 3 years of history, how long has this franchise system been operating, and what are your growth projections for the next 3-5 years?
#9
The Territory score of 60 is below the typical 80-85 range. What specific aspects of your territory terms fall below industry standards, and how might this impact franchisee performance?
#10
Item 19 financial performance data shows average gross sales of $1,312,615. How many franchisees reported this data, what is the typical net profit margin, and what is the range of performance among your existing franchisees?
#11
What are the renewal terms and any associated renewal fees after the initial 10-year term, given that Item 19 shows a renewal option but renewal fee data is not listed?
#12
The Ongoing Fees score of 58 is below the typical 62.0. Beyond royalty, ad fund, and technology fees, what other ongoing costs might franchisees incur?
#13
Can you provide a breakdown of your current 9 units by performance tier (top, middle, bottom performers) and explain why no units have been terminated or closed in 3 years?
#14
The Investment Costs score is 0, which is significantly below the typical 74-76 range. What initial investment amounts should a prospective franchisee expect beyond the $99,500 franchise fee?
#15
Regarding operational control, you maintain control over 4 categories of suppliers including mandatory use of specified build-out contractors. Can franchisees negotiate alternative suppliers, and what are the cost implications of this mandatory requirement?
#16
With no litigation cases over 3 years, can you explain what dispute resolution processes are in place and provide any examples of disagreements between franchisor and franchisees that were resolved?
#17
The contract allows a 2-year/5-mile non-compete, which is narrow compared to industry standards. What happens to franchisees who operate in neighboring territories after contract expiration?
#18