Given the royalty rate of 8.0% is significantly above the typical 5.0-6.0% range for senior care franchises, how does this compare to your primary competitors and what additional services or support justify this premium rate?
#1
The average gross sales of $677,760 fall below the category typical range of $734,088.75-$1,671,391.25. Can you clarify what factors contribute to this variance and whether it reflects the early stage of the system or typical unit performance?
#2
With only 5 units currently operating and 71.0% three-year growth, what is the franchisor's growth strategy and realistic unit expansion forecast for the next 3-5 years?
#3
Can you provide detailed information on how the $200 monthly technology fee is calculated, what systems it covers, and whether this fee could increase over time?
#4
The agreement includes 15 non-curable defaults allowing immediate termination. Can you specify what constitutes these non-curable defaults so franchisees understand termination risk scenarios?
#5
Given the Territory score of 75 is below the typical range of 80.0-85.0, what specific geographic protections are included in the non-exclusive territory, and how does the franchisor prevent encroachment?
#6
What is the actual renewal fee amount, as this is not specified in the available disclosure documents, and are there any conditions that could affect renewal eligibility?
#7
Can you explain the reason average gross sales are lower than category peers, including whether newer units are performing below mature units?
#8
With zero transfer activity since the system began, what is the franchisor's policy and process for franchise transfers, and are there conditions that could trigger transfer restrictions?
#9
The personal guarantee requirement includes spouse liability with joint and several liability. Can you clarify how spousal guarantees are enforced and whether all spouses must sign regardless of business ownership structure?
#10
What specific support and training are provided to justify the 8.0% royalty rate, and how does this compare to other senior care franchises in terms of marketing support, operations assistance, and technology resources?
#11
Given the post-term non-compete applies for 24 months within 25 miles, can you clarify whether this restriction applies if the franchise is not renewed by either party, or only upon franchisor-initiated termination?
#12
With the Ongoing Fees score of 55 below the typical 62.0, what additional ongoing fees beyond royalties, ad fund, and technology fees might franchisees incur (e.g., renewal fees, transfer fees, training fees)?
#13
Can you provide examples of the 5 curable defaults and 15 non-curable defaults, with specific details on what triggers 10-day versus 30-day cure periods?
#14
Since all disputes require arbitration in Kenton County, Kentucky, what is the typical cost range for arbitration proceedings and are any dispute resolution costs covered by the franchisor?
#15
With class action waivers and jury trial waivers in the dispute resolution clause, what recourse do franchisees have if they wish to collectively address system-wide issues?
#16
What is the franchisor's current unit closure rate across the 5 operating locations, and are you aware of any units struggling or at risk of not renewing?
#17
How are the 3 units added in the past year performing relative to the 2 pre-existing units, and what has been the franchisee feedback on business viability?
#18