What were the specific reasons for the 1 litigation case filed against YESCO, and has it been resolved? What were the outcomes or settlements?
#1
Can you provide details on the 7 unspecified conditions required for renewal, beyond the $15,000 successor franchise fee, to understand the full renewal obligations?
#2
The ad fund rate of 3.0% is above typical ranges for your category. How is this ad fund utilized, and can you provide performance metrics or examples of campaigns funded?
#3
Why does YESCO not charge a technology fee when the typical range for this category is $100-$500 monthly? What technology support is included with your system?
#4
Of the 7 unit closures over 3 years, how many were due to franchisee non-renewal versus voluntary cessation, and what were the primary reasons cited?
#5
The top quartile sales of $2,486,985 are significantly above typical for your category. What variables (territory size, business type, experience level) correlate with these outlier high performers?
#6
Given the $400,000 minimum revenue requirement within 24 months and a median unit generating $776,958 annually, what percentage of franchisees fail to meet this threshold in year 1-2?
#7
Can you clarify the 'unspecified changes' franchisees must make to renew? What are typical examples, and do these changes require capital investment?
#8
The 2-year, 50-mile non-compete applies to any YESCO business location. How many YESCO locations exist in typical franchise territories, and how does this limit post-exit opportunities?
#9
What is the justification for the 5-day cure period for payment defaults versus 30 days for other breaches? Have many franchisees been terminated under the immediate termination clause for the 19 specified violations?
#10
With 0% terminations recorded, how many franchisees have received cure notices, and what percentage successfully cured versus exited voluntarily?
#11
The transfer fee of $5,000 is below typical ranges. Does this low fee indicate easier transfers, and what conditions must be met for transfer approval?
#12
Personal guarantees with joint and several liability bind spouses to franchise obligations. How frequently have you enforced these guarantees against spouses in default situations?
#13
Can you provide the actual performance data for units in the bottom quartile? What is the failure rate for units generating less than $400,000 in year 1?
#14
The 18% annual interest rate on late payments is at the high end for franchises. What percentage of franchisees experience payment defaults, and how often is this interest applied?
#15
With non-exclusive territory, what prevents YESCO from opening company-owned or franchised units near existing franchisees, and are there case examples of this occurring?
#16
The system has been flat (99 units) for 1 year despite $50,000 franchise fees. Is YESCO actively recruiting new franchisees, and if so, why haven't new units offset closures?
#17
Of the 3 units listed as 'ceased other' in 2023 and 1 in 2024, what do these classifications mean, and do they represent franchisee exit or other circumstances?
#18