Explanation

This risk was not identified. The data in Item 20 shows very low franchisee turnover from 2022 to 2024. The tables report no terminations and only one unit that 'Ceased Operations' over the three-year period. This suggests a stable franchise system. High turnover can be a major red flag indicating systemic issues, so its absence here is a positive indicator.

Potential Mitigations

• You should still contact a diverse group of current and former franchisees from the lists in Exhibit I to confirm their satisfaction with the system.
• Ask your business advisor to help you formulate questions for these franchisees regarding the support and profitability of the business.
• Continue to monitor the franchisor's annual FDD updates for any changes in franchisee turnover trends.

Explanation

The franchised outlet count in Item 20 shows moderate growth from 2022 to 2024, which does not suggest an overly rapid expansion that might strain support systems. Healthy, manageable growth is generally a positive sign, as it indicates demand for the franchise without the risks associated with explosive growth that can lead to inadequate franchisee support.

Potential Mitigations

• When speaking with franchisees, ask about their perception of the quality and responsiveness of the franchisor's support systems.
• A business advisor can help you assess if the franchisor's corporate infrastructure seems adequate for its current size and planned growth.
• Your accountant can review the financial statements in Item 21 to evaluate if the franchisor is reinvesting in support infrastructure.

Explanation

This risk was not identified. 101 Mobility began offering franchises in March 2010 and has a substantial number of operating units. The franchisor and its management team have considerable experience in the industry. The system is well-established, not a new or unproven concept, which reduces risks associated with startup franchises that lack a track record of success or refined operational systems.

Potential Mitigations

• A business advisor can still help you research the company's history and reputation within the mobility and accessibility industry.
• Discuss the franchisor's long-term vision and history with senior franchisees to gain their perspective on the system's evolution.
• Your attorney can review the experience of the key executives listed in Item 2 to confirm their tenure and relevant background.

Explanation

The business of selling, renting, installing, and servicing mobility and accessibility equipment serves a durable need driven by demographic trends, such as an aging population and demand for ADA compliance. This market appears to be based on long-term needs rather than a short-lived trend or fad, which can enhance the potential for long-term business viability.

Potential Mitigations

• Engaging a business advisor to conduct independent research on the long-term outlook for the home and commercial accessibility market is still a prudent step.
• Discuss with current franchisees how their business has performed through various economic cycles.
• Your financial advisor can help assess the business model's resilience to potential shifts in healthcare policy or technology.

Explanation

This risk was not identified. The executives listed in Item 2 appear to have significant, relevant experience in operations, finance, and franchise development, often with large, well-known companies or within the franchise industry. The company itself has been operating and franchising for over a decade. This level of experience generally reduces risks associated with unseasoned management.

Potential Mitigations

• It is still beneficial to discuss the management team's reputation and effectiveness with current and former franchisees.
• A business advisor can help you research the professional backgrounds of the key executives listed in Item 2.
• During your interactions with the franchisor, assess the professionalism and knowledge of the management team.

Explanation

This risk was not identified. The FDD discloses the parent companies (101M AcquisitionCo, Inc., and its parents) and provides audited consolidated financial statements for the franchisor entity. The structure appears to be transparently disclosed as required. An undisclosed parent company can obscure financial weaknesses or control structures, but that does not appear to be the case here.

Potential Mitigations

• Your attorney should still confirm the corporate structure and ensure all relevant entities and their roles are clearly understood.
• It is wise for your accountant to review any guarantees or financial interdependencies between the franchisor and its parent companies.
• Asking the franchisor to explain the roles and responsibilities of each entity in the parent structure can provide additional clarity.

Explanation

This risk was not identified in the FDD. Item 1 states, "We do not have any predecessors." This means the current franchising entity, 101 Mobility, is the original franchisor and has not acquired the system from a previous company. This avoids the potential risks of inheriting negative history, such as litigation or high franchisee failure rates, from a predecessor entity.

Potential Mitigations

• A business advisor can still help you perform a general background check on the company and its founders to ensure a clean history.
• Confirm with long-tenured franchisees that the ownership and management structure has been consistent throughout their time with the system.
• Your attorney can verify the corporate history through public records to ensure the 'no predecessors' statement is accurate.