World Options

Given the 14.3% one-year turnover rate and 33.3% three-year turnover rate, what specific operational or market challenges have franchisees faced that led to these exits?

Can you provide details on the 3 units that closed or exited over the past 3 years—specifically their tenure, profitability, and the stated reasons for closure?

The franchise fee of $55,000 is $5,000-$23,875 above industry norms for Business Services. What additional services, training, or support justify this premium pricing?

The transfer fee of $27,500 is approximately 40% higher than the typical range. Under what circumstances would a franchisee trigger this fee, and is it negotiable?

The ad fund rate of 5.0% is nearly double the typical range of 1.0-2.75%. How is this fund allocated, and what measurable results can franchisees expect?

What is driving the 40% net unit growth (2 units) in the past year despite the 14.3% turnover rate? Are new units opening faster than existing ones are closing?

The franchise agreement requires minimum performance criteria of $1,200 gross margin for months 4-8 and $2,000 for months 9-12. How many franchisees have failed to meet these thresholds, and what are the consequences?

Can you provide financial statements or third-party validation for the reported median gross sales of $909,387? What percentage of franchisees achieve or exceed this figure?

The non-compete clause covers 2 years and 50 miles. Has the franchisor enforced this restriction against exiting franchisees, and are there any pending disputes related to non-compete violations?

The agreement contains 11 non-curable default categories. Can you clarify which breaches are considered non-curable and provide examples of franchisees who were terminated for non-curable defaults?

Personal guarantees are required from all owners and spouses. In the event of franchise failure, have franchisees faced personal liability claims beyond their business assets?

The franchise agreement mandates binding arbitration with class action waiver. Have any disputes been arbitrated, and what were the outcomes and costs to franchisees?

Late payments bear 18% annual interest. How frequently are late payments assessed, and what is the typical dispute resolution time in arbitration?

With no exclusive territory protection and non-exclusive status, how does the franchisor prevent internal competition or encroachment by other World Options franchisees?

The renewal fee equals the transfer fee at $27,500. Is this fee required at the end of the 10-year initial term, and are there any circumstances under which it could be waived or negotiated?

Item 19 financial data is available—does this include breakeven analysis and typical payback periods for franchisees? What was the average franchisee net profit reported?

The system currently has only 7 units. How long has the franchise been operating, and what is the long-term growth strategy given the small unit count?

Are there any franchise agreements currently in dispute, regulatory complaints, or state franchise authority investigations that are not reflected in the litigation data?

What support and training are provided during the initial 4-month ramp-up period while franchisees work toward the $1,200 monthly margin requirement?