Explanation

This specific risk was not identified in the FDD package. Item 20 data shows no franchisee turnover (terminations, non-renewals, or closures) in 2024. However, as a new system that only began franchising in 2024, there has not been sufficient time for turnover trends to develop. High turnover is a critical indicator of potential systemic problems, so this should be monitored in future FDDs.

Potential Mitigations

• Engaging a business advisor to analyze future FDDs for turnover trends will be crucial as the system matures.
• Your attorney can help you ask current franchisees about their satisfaction and intentions regarding renewal.
• An accountant should help you model the financial impact if the business does not perform as expected.

Explanation

This specific risk was not identified in the FDD package. While the system is new, its initial growth from zero to eight outlets in its first year does not represent the kind of explosive growth that typically strains an established franchisor's support systems. The primary risk here is the system's newness, not that it is growing too quickly for its infrastructure.

Potential Mitigations

• It is prudent to have your business advisor evaluate the franchisor's plans for scaling support services as the system grows.
• Your attorney can help you question current franchisees about the quality and responsiveness of the support they are currently receiving.
• An accountant can review the franchisor's budget for support staff and infrastructure in future financial statements.

Explanation

This risk was not identified in the FDD package. The business of cabinet mitigation, restoration, and manufacturing is tied to the durable home services and restoration industries. These services cater to ongoing needs related to home maintenance, renovation, and disaster recovery, rather than a short-lived trend or fad, suggesting a more stable market demand.

Potential Mitigations

• A business advisor can help you research the long-term stability and economic trends of the home restoration and remodeling market in your area.
• Understanding the competitive landscape with the help of a local market analyst will provide insight into the business's staying power.
• Your accountant can assist in creating financial models that account for cycles in the housing and remodeling markets.

Explanation

This risk was not identified in the FDD package. Item 2 shows that the key executives of Renew Medic have extensive prior experience in the franchising industry, particularly with affiliated brands like Furniture Medic and AmeriSpec, as well as with other large franchise organizations such as ServiceMaster and Authority Brands. This suggests the management team is familiar with operating and supporting a franchise system.

Potential Mitigations

• It is still worthwhile to have your business advisor help you research the specific track records of the key executives at their prior companies.
• Posing questions to current franchisees about their direct experiences with the management team's support and strategic direction is a valuable step.
• Your attorney can help verify the information presented in Item 2 through public record searches.

Explanation

This risk was not identified in the FDD package. Item 1 clearly discloses the parent company, TCB Services Holdings, LLC, and the ultimate private equity affiliate, Eagle Merchant Partners. The franchisor provides its own audited financial statements, and there is no indication that the financials of a parent are required but have been withheld.

Potential Mitigations

• Your attorney can confirm the corporate structure and identify all parent and affiliate companies involved.
• An accountant should review the provided financials to ensure they are complete and compliant with disclosure rules.
• It is prudent to ask your business advisor to assess the relationships between the disclosed parent and affiliate entities.

Explanation

This risk was not identified in the FDD package. Item 1 of the FDD states that Renew Medic has no predecessors. As a newly formed entity that began franchising in 2024, it has not acquired assets from a prior company that would be defined as a predecessor under franchise law, so there is no past history to obscure.

Potential Mitigations

• Your attorney can help verify the corporate history of the franchisor entity to confirm the absence of any legal predecessors.
• Researching the history of the affiliated brand, Furniture Medic, could provide context, a task your business advisor can assist with.
• Speaking with franchisees who converted from Furniture Medic can offer insights into the operational lineage of the system.

Explanation

This risk was not identified in the FDD package. Item 3 discloses that there is no litigation required to be reported. As a new franchise system, the absence of litigation is expected, but this provides no track record on how the franchisor handles disputes. It is important to monitor this Item in future FDDs.

Potential Mitigations

• Your attorney should review the dispute resolution clauses in the Franchise Agreement to understand how future conflicts would be handled.
• Discussing the franchisor's dispute resolution philosophy with current franchisees can provide some insight.
• A business advisor can help assess the potential for future litigation based on the terms of the agreement.