Turbo Tint

Can you provide details on the single litigation case initiated by the franchisor? What was the nature of the dispute, outcome, and has this issue been resolved?

Your 1-year turnover rate of 8.7% exceeds the typical range of 1.0-6.8%. Can you explain the reasons behind these 5 unit closures in 2023-2024 and whether any indicate systemic issues?

The system grew from 13 to 23 units in 3 years (20.95% CAGR). How many of these new units are from organic growth versus acquisitions or conversions, and what is your pipeline for unit expansion?

Average gross sales of $662,722 fall below the typical range of $816,490-$1,752,656. What factors contribute to below-average financial performance, and how does this compare to your system's expectations for new franchisees?

Why is your renewal term 15 years, significantly longer than the typical 5-10 year range for automotive franchises? What is your rationale for this extended commitment?

Your non-renewal rate is 5.9% annually. Can you explain why franchisees choose not to renew their agreements despite the 15-year initial term?

With a transfer rate of 0.0%, do you have policies that restrict or discourage franchisee-to-franchisee transfers? If so, what are the restrictions and why?

Item 19 financial data shows significant variation (bottom quartile at $119,067 vs. median at $915,503). What factors most significantly impact franchisee profitability, and can you provide guidance on which franchisees fall into each quartile?

The personal guarantee requirement includes spousal consent and acknowledgment. Can you clarify the scope of personal liability and whether there are any circumstances under which this guarantee could be released?

Your termination clause lists 13 non-curable defaults. Can you provide the complete list of these non-curable defaults and clarify what actions would trigger immediate termination without cure period?

Beyond the $45,000 franchise fee and $7,500 transfer fee, what are the typical startup costs and working capital requirements franchisees should budget for initial launch?

Can you provide a breakdown of how the $350 monthly technology fee is allocated and what specific services and software are included?

For the 2 units that closed in 2023 and 3 in 2024, were these closures initiated by franchisees voluntarily, or did the franchisor terminate any agreements? What were the primary causes?

You mention exclusive territory protection. How is the exclusive territory defined (radius, geographic boundary, etc.), and what is the typical territory size for a new franchisee?

Can you provide examples of cases where you have enforced the non-compete clause and protected franchisees' exclusive territories? How actively do you monitor for encroachment?

What is included in the $2,500 renewal fee, and are there any additional costs or franchisor-initiated modifications that typically occur during the renewal process?

The indemnification clause requires franchisees to indemnify the franchisor. Can you clarify the scope of this indemnification and provide examples of claims you have pursued against franchisees?

What support and training do franchisees receive in year 1 versus ongoing after that, and how does this support differ across the 30-year potential term?

For the top quartile franchisees generating $1,483,453 in gross sales, what differentiates their operations from those in lower quartiles, and is their success replicable?

Do you have any pending litigation, regulatory investigations, or complaints from franchisees with state regulators that are not reflected in your litigation disclosures?