TruBlue Home Service Ally

The franchisor has been named defendant in 5 lawsuits over the past 3 years—what are the specific allegations and outcomes of these cases, and what issues are they addressing?

The transfer rate of 13.5% is more than double the typical range for home service franchises. What percentage of transfers result from franchisees seeking to exit versus legitimate ownership changes, and what is the typical reason franchisees transfer units?

Average gross sales of $369,264 are approximately 13% below the typical range. What factors explain this performance gap, and how do top-performing units achieve higher revenues?

The non-compete radius is 15 miles, significantly narrower than the typical 25-40 mile range. How does this narrower protection affect your ability to prevent franchisee competition in the same market?

Why does the franchise agreement include 23 termination causes when the typical range is 14-21? Can you provide a summary of the additional causes beyond standard defaults?

The support and training score is 75, below the typical range of 79-90. What specific training and ongoing support resources do franchisees receive, and are there plans to expand these programs?

Can you clarify the royalty structure? The agreement mentions 'the greater of 6% or minimum royalty'—what is the minimum monthly royalty amount, and how frequently is it adjusted?

In the most recent year, 9 units closed while 14 transferred and 10 net units were added. Of the 9 closures, how many were initiated by the franchisor versus voluntary closures, and what were the primary causes?

The total potential contract term is 30 years (initial 10 + two 10-year renewals). What are the renewal fee requirements, if any, and on what terms does the franchisor agree to renewal?

Given the 5 litigation cases where the franchisor was defendant, were any related to franchise agreement disputes, territorial encroachment, or non-renewal/termination practices?

The franchise fee of $49,900 is above typical for the category. What is included in this fee, and are there any additional start-up costs not listed (insurance, equipment, initial marketing, working capital)?

The dispute resolution clause requires binding arbitration with a three-arbitrator panel and prohibits class actions. How many franchisees have pursued arbitration, and what is the average cost and duration of these proceedings?

The agreement requires personal guarantees from all principals and spouses. If a franchisee defaults, does the franchisor typically pursue personal guarantees against individual owners, and have there been wage garnishments or personal asset seizures?

Can you explain the late payment penalties of $100 or 10% of amount due (whichever is greater)? How many franchisees incur late fees annually, and are there payment plan options if cash flow is temporarily constrained?

Of the 5 litigation cases, how many involved franchisees, and how many involved other parties (employees, suppliers, regulators)? What is the average settlement amount?

The termination rate is low at 1.0%, but there are 23 termination causes in the agreement. How often are termination provisions actually invoked, and are there specific business metrics that trigger franchisor-initiated terminations?

The 3-year turnover rate is 25%, above the typical range. Is this turnover concentrated in specific geographic regions or among certain franchisee types, or is it system-wide?

With 104 current units and a transfer rate of 13.5%, approximately 14 units per year are changing hands. What criteria does the franchisor use to approve new buyers, and how many transfer requests are rejected annually?

The top quartile sales figure of $719,209 is below the typical range. What revenue levels do you project for a newly opened unit in year 1, 2, and 3, and what percentage of current franchisees achieve these projections?

The territory is exclusive, but the non-compete is only 2 years and 15 miles. If a franchisee's agreement expires or is terminated, can they operate a competing home service business within 15 miles immediately after the 2-year period expires?