UNITED FRANCHISE HOLDINGS, LLC

Item 7 outlines initial investments from $300,000 to $700,000, including a franchise fee starting at $49,000 (up to $210,000 for larger territories), covering training, equipment, and vehicles for full-service operations. Ongoing fees hit hard: 6% royalty on restoration/remediation revenue, plus 2% on reconstruction, a 2% brand fund (minimum $450/month), $250/month technology fee, and up to $300/month call center fee. Item 19 shines here, reporting average gross revenues of $1,076,085 and median $929,845 across units—strong for home services, implying potential profits after fees if costs are controlled, though no net profit data is provided.

System health raises flags: franchise locations grew from 33 in 2023 to 33 in 2024 (0% growth), now at 39 with 10 corporate stores, 3 transfers, and 10 projected new units. Flat growth amid disaster-prone markets suggests market saturation or execution issues, not explosive expansion like peers. For risk-tolerant investors eyeing $1M+ topline in a vital service, it's viable if local demand aligns—but stagnant unit counts signal caution on long-term brand momentum.