United Axle

The Ad Fund Rate of $999.99 annually is significantly above the typical range of 0.75-2.0% for automotive franchises. Can you provide a detailed breakdown of how these funds are allocated and what specific marketing and brand awareness initiatives franchisees receive in return?

Your termination rate of 5.0% is notably higher than the typical range of 0.0-1.9% for this franchise type. Can you explain the primary reasons for franchisor-initiated terminations and provide specific examples of franchise agreements that were terminated in the past 3 years?

The system has grown from 15 units to 29 units in 3 years, a 24.58% CAGR significantly above the typical range. What percentage of this growth came from new franchise sales versus acquisitions or conversions of existing businesses?

One unit closure was recorded in 2023. Can you provide details about why this franchise closure occurred and whether it was related to franchisor actions, franchisee circumstances, or market conditions?

Your support and training score of 66/100 falls below the typical range of 80.0-100.0 for automotive franchises. What specific training programs, ongoing support, and operational guidance do franchisees receive during their initial launch and throughout the franchise relationship?

The franchise requires exclusive purchase of all proprietary products from the franchisor with mandatory minimum annual spindle purchase requirements. Can you clarify what these minimum purchase requirements are and whether they are adjustable based on franchisee location or market conditions?

Franchisees must maintain a joint and several personal guarantee for all financial obligations. In how many cases has the franchisor enforced this personal guarantee, and what were the circumstances?

The $1,200 annual Advertising & Brand Awareness Fund contribution includes a 12% annual late payment penalty. Has any franchisee been assessed this penalty, and what is the franchisor's collection rate for these fees?

Can you provide a list of the 29 current franchise units with their locations, operating duration, and any performance metrics (revenue or profitability data) if available?

What specific metrics does the franchisor use to evaluate franchisee performance and determine whether termination is warranted? Are these metrics communicated in writing before franchise execution?

The 4 renewal options each provide 5-year terms for a potential 30-year total commitment. What factors influence the franchisor's decision to renew or decline renewal at the end of the initial 10-year term?

Does the non-compete clause of 2 years and 5 miles apply to owners personally, their spouses, and shareholders, and are there any carve-outs or exceptions?

The System Health score of 75/100 is above the typical range of 47.0-71.0. What specific operational systems, technology platforms, and benchmarking tools are in place to support franchisee success?

Given the franchise's rapid growth trajectory, what expansion plans does the franchisor have for the next 3-5 years, and will territories be carved up or reassigned for new franchisees in existing markets?

What is the average investment required beyond the $25,000 franchise fee (including equipment, working capital, buildout costs) and how long does the franchisor expect before franchisees achieve profitability?

Can you provide the contact information for all 29 existing franchisees so prospective franchisees can conduct independent reference calls regarding their experience with the system?

The 10-year initial term is lengthy compared to many franchises. What specific protections does the franchisee have during the initial term, and can the agreement be terminated early and under what circumstances?

What happens to a franchisee's exclusive territory if they choose not to renew or if the franchisor elects not to renew—will that territory be offered to a new franchisee or absorbed by the franchisor?

Has the franchisor been involved in any disputes, arbitrations, or regulatory investigations that did not result in formal litigation, and if so, what were the circumstances and outcomes?