The technology fee of $600/month is at the upper end of the typical range for home services franchises. What specific services and software are included in this fee, and have there been any increases since the franchise agreement was executed?
#1
Your closure rate of 0.0% is significantly below the typical 0.55-12.5% range for home services franchises. Can you explain why there have been zero unit closures or terminations, and what factors contribute to this exceptional retention?
#2
With only 5 current units and zero growth in the past year, what is the franchisor's growth strategy and timeline for system expansion?
#3
The Risk Factors score of 80 is above the typical range (58.0-76.0). What specific risk factors contribute to this elevated score, and how do they impact franchisees?
#4
Can you provide details on the 10 categories of curable defaults and 9 categories of non-curable defaults mentioned in the termination clause, including specific examples?
#5
What is the minimum cure period for different categories of defaults, and can you provide examples of breaches that allow only the 2-day minimum cure period?
#6
The non-compete restriction covers a 25-mile radius for 2 years post-termination. How is the 'former territory perimeter' defined if a franchisee's service area extends beyond assigned territory boundaries?
#7
What personal guarantees are required from designated principals, and can these guarantees be limited or negotiated before signing the franchise agreement?
#8
The agreement requires exclusive purchases from franchisor-designated approved sources. What is the average markup or profit margin on these required purchases, and how frequently do approved suppliers change?
#9
Can you provide the actual Item 19 financial performance statement showing breakdown by unit age, location type, and specific revenue/expense categories for the 5 current units?
#10
What are the minimum business hours required by brand standards, and what penalties apply for non-compliance?
#11
Has the franchisor ever initiated termination proceedings against a franchisee, and if so, what were the underlying causes?
#12
What training and ongoing support are provided to new franchisees, and is there a dedicated support team given the small system size?
#13
How are the $10,000 renewal and transfer fees applied? For example, if a franchisee renews and later transfers, are both fees due?
#14
Given the modest system size of 5 units, what is the franchisor's financial stability and operational capacity to support franchisees?
#15
Are there any territorial encroachment issues between the 5 current franchisees, and how does the franchisor manage multi-unit operators or master franchisees?
#16
What recourse does a franchisee have if the franchisor fails to enforce the exclusive territory protection against competing turf service providers?
#17
Can you explain the indemnification requirements in detail—specifically what costs, liabilities, and legal expenses must the franchisee cover on the franchisor's behalf?
#18
What modifications or negotiation flexibility exists regarding the termination cure periods, non-compete radius, or technology fee before executing the franchise agreement?
#19