Valcourt Building Services

The royalty rate of 65.0% is exceptionally high compared to industry standards of 6.0-8.1%. How is this rate justified, and what specific services and support does the franchisor provide to warrant this level of ongoing payments?

Given the franchise fee of $10,000 is less than one-third of the typical range ($30,000-$60,000), what is included in your initial investment, and are there additional costs not reflected in the franchise fee?

The initial contract term is 5 years with no renewal options disclosed. Can you clarify the renewal process, any associated renewal fees, and the circumstances under which renewal may be denied?

Territory is designated as non-exclusive with no encroachment protection. How does the franchisor prevent placing competing franchisees in the same geographic area, and what remedies exist if encroachment occurs?

What specific performance or sales metrics must franchisees achieve to qualify for renewal after the initial 5-year term?

The franchise agreement includes personal and unconditional guarantees for all financial obligations. What happens to the personal guarantee if the franchisee cannot pay, and are there circumstances where the guarantee may be waived or modified?

Why does the unit count show zero turnover over 3 years when the cleaning and restoration category typically experiences 1.85-16.2% annual turnover? Are there franchisees currently struggling but not yet formally exited?

The transfer fee of $1,000 is significantly below typical rates ($5,500-$15,000). What does this fee cover, and are there additional costs or franchisor approval hurdles when transferring ownership?

Item 19 (Financial Performance Representations) is not provided. Will the franchisor supply historical earnings data for existing franchisees upon request, and if not, why?

How is the 65.0% royalty rate calculated and allocated? Is it a percentage of gross revenue, and are there any reductions, holidays, or adjustments available during the startup phase or for underperforming units?

The system has grown from 15 to 22 units in 3 years. What percentage of growth came from new franchise sales versus transferring units, and how many applicants were rejected or self-selected out during this period?

Describe the 11 specific termination causes listed in the Franchise Disclosure Document. Which of these are most commonly invoked, and what does the termination process entail?

The non-compete clause specifies 2 years but no mileage restriction. If you exit, how is geographic coverage determined to enforce the non-compete, and what remedies does the franchisor pursue for violations?

What advertising fund or technology services are typically available, and if ad fund and technology fees are not charged, how are these services funded or subsidized?

Given the low turnover rate of 0.0% over 3 years, how many franchisees have approached the franchisor about exit options, requested buyback assistance, or expressed concerns about profitability?

Are there any pending disputes, litigation threats, or regulatory investigations that are not reflected in the current 0 cases and 0 pending litigation metrics?

What is the average revenue, profitability, and return on investment for the 22 current franchisees? Can you provide references from franchisees at different stages (1-year, 3-year, and 5-year)?

The contract includes only 4 renewal conditions. What are these conditions, and are there subjective elements (such as franchisor discretion) that could lead to renewal denial?

How many franchisees have achieved profitability within the first 2-3 years of operation, and what is the average time to break-even?