101 Mobility
Home Services
Founded 2010172 locations101 Mobility provides home accessibility modifications and repair services. Franchisees operate a combination business office and warehouse, providing installation services for various accessibility products. The business model involves managing client leads and data, sales records, inventory, marketing, administrative tasks, and customer service using proprietary MOBILINK software. Franchisees are responsible for purchasing, installing, maintaining, and using specified computer hardware and software, including MOBILINK and QuickBooks Pro. They also handle initial launch advertising, ongoing marketing, and may operate multiple territories from a single office location, subject to franchisor approval.
Company Profile
Year Founded:2010
101 Mobility Franchise Cost
| Franchise Fee: | $74,000Key Metric |
| Total Investment: | $182,000 - $259,000Key Metric |
| Liquid Capital: | $42,500 |
| Royalty Fee: | 7% of gross sales |
| Marketing Fee: | 2% of gross sales |
Quick ROI Calculator
Based on 101 Mobility's actual financial data
Outlet Counts by Year
Historical outlet data extracted from FDD documents
Total US Locations:172
Scale relative to 1,000 locations
Franchised Units:172
Corporate Units:16
Additional Information
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AI-Powered Due Diligence Analysis
Our advanced AI analyzes Franchise Disclosure Documents (FDDs) to identify potential risks and opportunities across 10 critical categories.
14
High Risk
Critical items
42% of total
17
Medium Risk
Monitor closely
52% of total
2
Low Risk
Manageable items
6% of total
33
Total Items
Factors analyzed
10 categories
6.82
Overall Score
Low RiskHigh Risk
010
Franchisor Stability Risks
6 risks identified
1
3
2
Reliance on VA Hospital Sales
Medium
Explanation:
- Item 1 mentions that a "large portion" of franchisee sales are through VA hospitals.
- Over-reliance on a single customer segment like VA hospitals creates vulnerability to changes in government policies, budgets, or procurement practices.
- Loss of these contracts could significantly impact franchisee revenue.
Potential Mitigations:
- Diversify customer base by actively pursuing private-pay clients, businesses seeking ADA compliance, and other referral sources.
- Develop strong relationships with multiple VA hospitals and other government agencies to reduce reliance on any single entity.
- Continuously monitor changes in VA policies and adapt business strategies accordingly.
FDD Citations:
- Item 1: "For many, though not all, of our franchisees, a large portion of current Franchised Business sales are through Veteran Administration (“VA”) hospitals..."
Complex Ownership Structure
Medium
Explanation:
- Item 1 reveals a complex ownership structure with multiple parent companies and affiliates (101M AcquisitionCo, Inc., Mobility Intermediate II, LP, Mobility Intermediate I, LP, Mobility HoldCo, LP).
- This complexity can lead to potential conflicts of interest, slower decision-making processes, and difficulties in resolving disputes.
- Changes in ownership or restructuring within the parent companies could impact franchisee support and the overall stability of the franchise system.
Potential Mitigations:
- Carefully review the FDD to understand the relationships between the franchisor and its affiliates, including any potential conflicts of interest.
- Inquire about the financial stability and long-term plans of the parent companies.
- Seek legal counsel to assess the potential implications of the complex ownership structure.
FDD Citations:
- Item 1: "Our parent company, 101M AcquisitionCo, Inc., ... as does its parent, Mobility Intermediate II, LP, as well as its parent, Mobility Intermediate I, LP, and, finally, its parent, who is our ultimate parent, Mobility HoldCo, LP."
Dependence on Affiliates for Key Products/Services
Medium
Explanation:
- The franchisor relies on affiliates like IP Licensor, APD, and Harmar for intellectual property, software, ramps, and other equipment.
- Dependence on affiliates creates potential supply chain vulnerabilities and pricing risks.
- Disputes or disruptions within these affiliate relationships could negatively impact franchisees' ability to operate their businesses.
Potential Mitigations:
- Review the agreements between the franchisor and its affiliates to understand the terms and conditions related to supply, pricing, and dispute resolution.
- Inquire about the financial stability and operational capacity of these affiliates.
- Explore alternative suppliers for key products and services to mitigate potential disruptions.
FDD Citations:
- Item 1: References to IP Licensor, APD Company, LLC, and Harmar Mobility, LLC as affiliates providing key products and services.
Relatively Young Franchise System
Low
Explanation:
- 101 Mobility began franchising in 2010, making it a relatively young franchise system compared to more established brands.
- Younger systems may have less experience in supporting franchisees, adapting to market changes, and navigating economic downturns.
Potential Mitigations:
- Thoroughly research the franchisor's track record, including franchisee satisfaction and financial performance.
- Speak with existing franchisees to understand their experiences and challenges.
- Assess the franchisor's support infrastructure and training programs.
FDD Citations:
- Item 1: "We began offering franchises of the type described in this disclosure document in March 2010."
Limited Operating History as a Franchisor
Low
Explanation:
- While IP Licensor has operated a similar business since 2008, the franchisor itself has limited experience in managing a franchise network.
- This lack of experience could lead to challenges in providing effective support, marketing, and training to franchisees.
Potential Mitigations:
- Evaluate the franchisor's management team and their experience in franchising.
- Assess the quality and comprehensiveness of the training and support programs offered.
- Seek feedback from existing franchisees about the level of support they receive.
FDD Citations:
- Item 1: "IP Licensor has operated a 101 MOBILITY business similar to the franchises offered in this disclosure document since its inception and provides franchise sales, marketing, and operational support services to us and to our franchisees."
Potential for Misrepresentation or Misleading Information (Compliance Questionnaire)
High
Explanation:
- The Compliance Questionnaire in Exhibit I aims to confirm the franchisee's understanding and prevent misrepresentation. However, its presence highlights the potential risk of unauthorized promises or misleading information being provided during the sales process.
- Franchisees relying on inaccurate information could face significant challenges in operating their businesses and achieving profitability.
Potential Mitigations:
- Carefully review the entire FDD and compare it with any verbal representations or marketing materials received.
- Document all communications with the franchisor and its representatives.
- Seek independent legal counsel to review the Franchise Agreement and other related documents before signing.
- Contact existing franchisees to verify the accuracy of information provided by the franchisor.
FDD Citations:
- Exhibit I: "The purposes of this Questionnaire are to confirm that you understand the terms of the contract and the limitations on claims you may make... and to determine whether any statements or promises were made to you that we have not authorized or that might be untrue, inaccurate or misleading."
Disclosure & Representation Risks
3 risks identified
3
Misrepresentation of Information
High
Explanation:
- Franchisee acknowledges the truth and accuracy of all information provided to the franchisor. Misrepresenting information, even unintentionally, can lead to termination of the agreement and legal action.
Potential Mitigations:
- Thoroughly review all information submitted to the franchisor for accuracy and completeness.
- Seek legal counsel to review the agreement and ensure all disclosures are accurate.
- Maintain clear records of all communications and transactions with the franchisor.
FDD Citations:
- Item 10.1: "Truth of Information"
Lack of Due Authority
High
Explanation:
- If the franchisee is an entity, ensuring all signing individuals have the proper authority is crucial. Lack of proper authorization can invalidate the agreement and create operational challenges.
Potential Mitigations:
- If the franchisee is a corporation or other legal entity, verify through corporate resolutions or other official documentation that the signing individuals have the authority to bind the entity to the agreement.
- Consult with legal counsel to ensure compliance with all relevant regulations and internal governance requirements.
FDD Citations:
- Item 10.2: "Due Authority"
Personal Guarantees
High
Explanation:
- Item 5.32 mentions "Ownership and Guarantee," suggesting potential personal guarantees for franchise obligations. This exposes the franchisee's personal assets to business liabilities.
Potential Mitigations:
- Carefully review the guarantee's scope and implications with legal counsel.
- Negotiate limitations on the guarantee, if possible.
- Understand the financial risks and ensure sufficient personal assets are protected.
FDD Citations:
- Item 5.32: "Ownership and Guarantee"
Financial & Fee Risks
3 risks identified
1
2
Lack of Marketing Fund Transparency and Control
High
Explanation:
- The franchisor collects up to 4% of Gross Sales as a Marketing Fee but provides no contractual obligation for specific spending, separate accounting, or fiduciary responsibility. This lack of transparency creates a risk of misuse or ineffective use of funds without franchisee recourse.
- The franchisor states they "may spend such monies as we deem appropriate" which offers no guarantee of localized marketing support or a return on investment for franchisees.
- The disclosure of 2023 marketing allocation (0% media placement, 74% production, 26% administrative) raises concerns about the effectiveness of marketing spend and potential overspending on internal costs.
Potential Mitigations:
- Negotiate for greater transparency regarding Marketing Fee expenditures and a commitment to a specific marketing plan.
- Request access to audited financial statements related to Marketing Fees to ensure proper allocation.
- Join and actively participate in the Franchisee Advisory Council to voice concerns and advocate for improved marketing practices.
FDD Citations:
- Item 5: "Marketing Fee monies are general operating funds and we may spend such monies as we deem appropriate."
- Item 5: "We will not be required to spend any particular amount on marketing...nor any pro rata amount based upon your Marketing Fee payment."
- Item 5: "In 2023, our marketing expenditures were allocated as follows: 0% on media placement, 74% on production, and 26% on administrative expenses."
- Item 6: Marketing Fee disclosure.
Mandatory Initial Launch Advertising with Limited Control
Medium
Explanation:
- Franchisees are required to spend $4,000-$6,000 on initial launch advertising according to the franchisor's plan, which may limit flexibility and effectiveness for individual locations.
- While modifications to the plan are allowed, they are subject to franchisor approval, potentially hindering franchisee control over local marketing efforts.
- The franchisor's current requirement to fund Google, Bing, and other online ads directly raises concerns about cost-effectiveness and transparency.
Potential Mitigations:
- Carefully review the franchisor's initial launch advertising plan template and negotiate for modifications that better suit the local market.
- Request detailed reporting and metrics on the performance of the mandatory online ad campaigns managed by the franchisor.
- Seek advice from experienced marketing professionals to assess the effectiveness of the proposed plan and identify potential alternatives.
FDD Citations:
- Item 5: "In connection with the opening of your Franchised Business...you must spend between $4,000 and $6,000...for initial launch advertising."
- Item 5: "We will provide you with an initial launch advertising plan template, which you may modify, however, we have the right to approve or disapprove your modifications."
- Item 5: "Currently, our initial launch advertising plan requires you to fund Google ad, Bing ad, and other designated online ad campaigns we direct."
Mandatory Ongoing Local Marketing Expenditures
Medium
Explanation:
- Franchisees are required to spend up to 2% of Gross Sales per month on local marketing, adding to the financial burden and potentially impacting profitability, especially during slower periods.
- The franchisor's right to review and approve marketing campaigns and budgets can restrict franchisee autonomy and responsiveness to local market conditions.
Potential Mitigations:
- Develop a detailed local marketing budget and plan that aligns with the franchisor's requirements while maximizing ROI.
- Proactively communicate with the franchisor regarding local marketing initiatives and seek their input early in the planning process.
- Negotiate for greater flexibility in local marketing spending and campaign approval.
FDD Citations:
- Item 5: "During the term of the Franchise Agreement, we may require that you spend up to 2% of Gross Sales per month on approved marketing."
- Item 5: "We may also require that you provide us with an advanced copy of your pending marketing campaign and budget for our review and approval."
Legal & Contract Risks
3 risks identified
3
Washington-Specific Franchise Laws Superseding Franchise Agreement
Medium
Explanation:
- Item 17 explicitly states that Washington's Franchise Investment Protection Act (FIPA) may supersede the franchise agreement, particularly regarding termination and renewal. This creates uncertainty about the enforceability of certain contract provisions.
- The FDD highlights potential conflicts between the franchise agreement and Washington law, which could lead to disputes and legal challenges.
Potential Mitigations:
- Carefully review the FIPA and compare it to the franchise agreement to understand potential conflicts.
- Consult with a franchise attorney specializing in Washington law to assess the implications of these legal differences.
- Negotiate with the franchisor to address any concerning discrepancies between the agreement and Washington law.
FDD Citations:
- Item 17, Additional Disclosure: "RCW 19.100.180 may supersede the franchise agreement...including the areas of termination and renewal..."
Restrictions on Non-Compete Agreements for Employees and Independent Contractors
Medium
Explanation:
- Item 17 details Washington state law restrictions on non-compete agreements for employees and independent contractors, based on earnings thresholds. This could limit the franchisor's ability to protect its business interests and the franchisee's ability to retain key personnel.
Potential Mitigations:
- Understand the specific earnings thresholds and how they apply to your potential employees and independent contractors.
- Consult with legal counsel to explore alternative strategies for protecting confidential information and trade secrets.
- Consider the impact of these restrictions on your business operations and hiring practices.
FDD Citations:
- Item 17, Additional Disclosure: "Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable..."
Restrictions on Restricting Employee Solicitation
Medium
Explanation:
- Washington law, as described in Item 17, prohibits franchisors from restricting franchisees from soliciting or hiring employees of the franchisor or other franchisees. This could lead to increased employee turnover and competition for qualified personnel within the franchise system.
Potential Mitigations:
- Develop strong employee retention programs to mitigate the risk of losing employees to other franchisees or the franchisor.
- Factor in potential employee turnover when creating your business plan and budget.
FDD Citations:
- Item 17, Additional Disclosure: "RCW 49.62.060 prohibits a franchisor from restricting...a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor."
Territory & Competition Risks
3 risks identified
2
1
Loss of Territorial Protection Due to Low Sales
High
Explanation:
- The FDD states that territorial protection can be terminated if specific annual gross sales targets aren't met ($300,000 in years 3-5, $500,000 in year 6 and beyond). Failure to achieve these targets could expose the franchisee to increased competition from other 101 Mobility businesses within their original territory.
- This creates significant pressure to perform and could lead to financial strain if the market doesn't support the required sales volume.
Potential Mitigations:
- Thoroughly research the market demographics and potential customer base within the assigned territory before signing the franchise agreement.
- Develop a robust marketing and sales plan to aggressively target potential customers and build market share quickly.
- Consult with existing franchisees to understand their sales performance and strategies, particularly those in similar markets.
- Negotiate a realistic territory size and sales targets with the franchisor, considering local market conditions.
FDD Citations:
- Item 12: "We have the right to terminate your limited territorial protection only under the following two circumstances: 1) if your annual Gross Sales from sales inside your Territory do not exceed at least $300,000 during your third through fifth years in operation; or 2) if your annual Gross Sales from sales inside your Territory do not exceed at least $500,000 during your sixth and subsequent years in operation."
Competition from Other 101 Mobility Channels
High
Explanation:
- The FDD explicitly states that franchisees will not have an exclusive territory and may face competition from other franchisees, company-owned outlets, and alternative distribution channels (internet, wholesale, etc.) controlled by the franchisor.
- This multi-channel approach can lead to price competition and cannibalization of sales, impacting franchisee profitability.
Potential Mitigations:
- Carefully evaluate the competitive landscape within the territory, including existing 101 Mobility presence and other distribution channels.
- Focus on building strong local relationships and providing exceptional customer service to differentiate from other channels.
- Explore opportunities to specialize in specific product lines or customer segments to reduce direct competition.
- Clearly understand the franchisor's online sales strategy and how it might impact local franchisees.
FDD Citations:
- Item 12: "You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control."
- Item 12: "...sell or license others to sell, equipment and services through alternative distribution channels, including via the Internet, wholesale channels, and independent third party retailers, using the Marks or under names and symbols other than the Marks..."
National Account Competition
Medium
Explanation:
- The franchisor reserves the right to establish national or regional account arrangements, potentially diverting customers within the franchisee's territory to other service providers.
- While the FDD mentions a current policy of granting franchisees first right to service National Accounts in their territory, this is not a guaranteed right and could change.
Potential Mitigations:
- Seek clarification from the franchisor regarding the existing National Account program and its potential impact on the assigned territory.
- Inquire about the criteria used for National Account designation and the process for franchisee participation.
- Understand the terms and conditions of servicing National Accounts, including pricing and service level requirements.
FDD Citations:
- Item 12: "We may, but are not obligated to, negotiate and enter into national or regional account or referral arrangements...We may designate any of your current or prospective customers or third party arrangements as National Accounts without paying you any compensation."
- Item 12: "Currently, VA hospital sales and Workman’s Compensation third-party administrators, among other accounts, are designated as sales under a National Account program."
Regulatory & Compliance Risks
3 risks identified
1
2
Dependence on Affiliated Suppliers
High
Explanation:
- Item 8 discloses that affiliates, APD and Harmar, supply ramps and mobility equipment. While not exclusive suppliers, this arrangement creates a potential conflict of interest and dependence. Franchisees may face pressure to purchase from these affiliates, potentially at higher prices or with less favorable terms than from independent suppliers. This could impact profitability and competitiveness.
- The FDD also mentions officers having minority ownership in Mobility HoldCo, LP, the parent company of Harmar and APD, further strengthening the potential conflict of interest.
Potential Mitigations:
- Carefully compare pricing and terms offered by APD and Harmar with those of other suppliers before making purchasing decisions. Document these comparisons.
- Request written confirmation from the franchisor that purchasing from affiliates is not mandatory unless explicitly stated in the agreement.
- Consult with a franchise attorney to understand the implications of affiliated supplier relationships and potential legal recourse if faced with unfair pricing or pressure tactics.
FDD Citations:
- Item 8: "Our affiliate APD manufactures and sells ramps to 101 MOBILITY franchisees. Our affiliate Harmar sells mobility and accessibility related equipment to 101 MOBILITY franchisees."
- Item 8: "Other than Mr. Loch’s, Mr. Harrison’s, and Ms. Beeson’s minority ownership in Mobility HoldCo, LP, whose subsidiaries include Harmar and APD, none of our officers own an interest in any privately-held suppliers..."
Limited Supplier Options
Medium
Explanation:
- Item 8 states the franchisor has the right to require specific brands, models, and suppliers, potentially limiting franchisees' flexibility and negotiating power. This could lead to higher costs, reduced product diversity, and dependence on potentially unreliable suppliers.
- The franchisor can also mandate purchases from a single source, which could be the franchisor itself, an affiliate, or a buying cooperative. This further restricts choice and increases the risk of supply chain disruptions.
Potential Mitigations:
- Thoroughly review Item 8 and the Franchise Agreement to understand the full extent of supplier restrictions.
- Negotiate for greater flexibility in supplier selection during the franchise agreement negotiation process.
- Develop relationships with alternative suppliers as backup options, if permitted.
FDD Citations:
- Item 8: "We have the right to require that supplies, equipment and services, and the vehicles that you purchase...be purchased only from suppliers or service providers that we have expressly approved; and/or (iv) be purchased only from a single source that we designate..."
Mandatory Technology Requirements
Medium
Explanation:
- Item 8 mandates the use of the franchisor's proprietary MOBILINK software and specific hardware (iPad Pro, wireless printer, Microsoft Surface Go), limiting flexibility and potentially increasing costs. Franchisees are locked into the franchisor's technology ecosystem and may face challenges if the technology becomes obsolete or if better alternatives emerge.
Potential Mitigations:
- Inquire about the cost and functionality of the mandatory software and hardware. Compare with market alternatives.
- Request demonstrations and training on the MOBILINK software to assess its usability and effectiveness.
- Negotiate for the right to use alternative software or hardware if superior options become available.
FDD Citations:
- Item 8: "With respect to software, you may purchase QuickBooks Pro from any third-party supplier, but you must license our proprietary MOBILINK software from us."
- Item 8: "We will provide you with your remaining hardware requirement, including an iPad Pro, wireless printer, and Microsoft Surface Go. We are the only approved supplier for this remaining hardware."
Franchisor Support Risks
3 risks identified
1
2
Mandatory Supplier Dependence and Pricing Power
High
Explanation:
- The franchisor mandates specific suppliers for various products and services, including equipment, vehicles, software, and even email accounts. This creates a high dependence on these suppliers, giving them significant pricing power and limiting the franchisee's ability to negotiate better deals or explore alternative, potentially more cost-effective options.
- Changes in supplier pricing or product availability could significantly impact the franchisee's profitability and operational efficiency.
- The franchisor's affiliate relationship with some suppliers (APD and Harmar) raises concerns about potential conflicts of interest and inflated pricing.
Potential Mitigations:
- Carefully analyze the pricing and terms offered by mandatory suppliers. Compare them with market rates to assess their competitiveness.
- Negotiate strongly with the franchisor for favorable supply agreements and explore the possibility of alternative supplier options in the future.
- Seek legal advice to understand the implications of the mandatory supplier agreements and potential recourse in case of unfair pricing or supply disruptions.
FDD Citations:
- Item 8: "We have the right to require that supplies, equipment and services, and the vehicles that you purchase…be purchased only from suppliers or service providers that we have expressly approved; and/or…be purchased only from a single source that we designate (which may include us or our affiliates…)"
- Item 8: "Our affiliate APD manufactures and sells ramps…Our affiliate Harmar sells mobility and accessibility related equipment…"
Limited Control over Product and Service Offerings
Medium
Explanation:
- Franchisees can only offer approved products and services, restricting their ability to adapt to local market demands or differentiate themselves from competitors.
- This lack of flexibility could hinder innovation and limit the franchisee's ability to cater to specific customer needs or capitalize on emerging market trends.
Potential Mitigations:
- Thoroughly research the approved product and service offerings to ensure they align with the target market in the chosen territory.
- Communicate regularly with the franchisor about potential new product/service opportunities and advocate for greater flexibility in offerings.
- Explore the supplier approval process outlined in the FDD to understand the potential for introducing new offerings in the future.
FDD Citations:
- Item 8: "You may offer in your Franchised Business only the mobility and accessibility related equipment and services that we have approved in writing…"
Supplier Approval Process Uncertainty
Medium
Explanation:
- The franchisor's supplier approval process is opaque, with no published criteria and the sole discretion to approve or deny requests. This creates uncertainty for franchisees seeking to introduce new products or services or work with preferred suppliers.
- The franchisor can charge for the evaluation process, regardless of the outcome, adding a financial burden to franchisees.
Potential Mitigations:
- Request clarification from the franchisor about the supplier approval process and any informal criteria they use.
- Network with existing franchisees to understand their experiences with the approval process and any best practices.
- Factor in the potential cost of supplier evaluations when budgeting for new product/service introductions.
FDD Citations:
- Item 8: "We have the right to grant, deny, or revoke approval…based solely on our judgment and we currently do not publish our criteria for granting approvals."
- Item 8: "You agree to pay us a charge not to exceed the reasonable cost of the inspection and our actual cost of testing…whether or not the item, service, supplier, or service provider is approved."
Exit & Transfer Risks
3 risks identified
2
1
Washington State Franchise Investment Protection Act Superseding Franchise Agreement
High
Explanation:
- The FDD states that the Washington Franchise Investment Protection Act (RCW 19.100) may supersede the franchise agreement, particularly regarding termination and renewal. This creates uncertainty and potential vulnerability for franchisees outside of Washington, as their agreements might be interpreted differently or offer less protection.
- This also introduces complexity in understanding the governing rules and potential conflicts between the agreement and state law.
Potential Mitigations:
- Carefully review RCW 19.100 to understand its provisions and how they might interact with the franchise agreement, even if operating outside Washington.
- Consult with a franchise attorney specializing in multi-state operations to assess potential conflicts and implications for your specific location.
- Seek clarification from the franchisor on how they intend to apply the franchise agreement in light of this potential conflict and document their response.
FDD Citations:
- Item 17, Additional Disclosures: "RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise."
Broad General Release Requirement
High
Explanation:
- The General Release (Exhibit C) requires franchisees to release the franchisor from a broad range of claims, including unknown or future claims. This could limit the franchisee's legal recourse in unforeseen circumstances.
- While the release excludes claims under the Washington Franchise Investment Protection Act for Washington franchisees, it raises concerns about the franchisor's approach to dispute resolution and potential power imbalance.
Potential Mitigations:
- Carefully review the General Release with legal counsel specializing in franchise law to fully understand its implications.
- Negotiate with the franchisor to narrow the scope of the release, if possible, and document any agreed-upon changes.
- Understand the specific circumstances under which the release is required (transfer, renewal, etc.) and consider the potential risks before agreeing to it.
FDD Citations:
- Exhibit C, General Release (Sample Form): "Franchisee...forever and fully release...from any and all claims...of whatever kind or nature, whether known or unknown..."
Transfer Fee Uncertainty
Medium
Explanation:
- The FDD mentions transfer fees are collectable based on "reasonable estimated or actual costs." This lacks specificity and could lead to disputes over what constitutes "reasonable" costs.
Potential Mitigations:
- Request a detailed breakdown of potential transfer costs from the franchisor.
- Include clear language in the franchise agreement regarding the calculation and limitations of transfer fees.
- Consult with a franchise attorney to negotiate favorable terms regarding transfer fees.
FDD Citations:
- Item 17, Additional Disclosures: "Transfer fees are collectable to the extent that they reflect the franchisor’s reasonable estimated or actual costs in effecting a transfer."
Operational & Brand Risks
3 risks identified
1
2
Mandatory Supplier Dependence
High
Explanation:
- The franchisor mandates specific suppliers for essential goods and services, including equipment, software (MOBILINK), and email accounts. This creates a high dependency on these suppliers and limits franchisee flexibility.
- Changes in supplier pricing, quality, or availability could significantly impact profitability and operations.
- The franchisor's affiliate relationship with APD and Harmar raises concerns about potential conflicts of interest and inflated pricing.
Potential Mitigations:
- Carefully review the supplier agreements and pricing structures. Negotiate favorable terms where possible.
- Assess the financial stability and reputation of mandatory suppliers.
- Understand the process for requesting alternative suppliers and the franchisor's criteria for approval.
- Investigate the market for similar products/services to understand potential cost comparisons.
FDD Citations:
- Item 8: "We have the right to require that supplies, equipment and services... be purchased only from suppliers or service providers that we have expressly approved... and/or (iv) be purchased only from a single source that we designate (which may include us or our affiliates...)."
- Item 8: "Our affiliate APD manufactures and sells ramps... Our affiliate Harmar sells mobility and accessibility related equipment..."
- Item 8: "With respect to software... you must license our proprietary MOBILINK software from us."
- Item 8: "We are also your designated email address account supplier."
Limited Supplier Approval Process
Medium
Explanation:
- The franchisor controls the approval process for alternative suppliers, with undisclosed criteria and the right to charge for evaluations.
- The 60-day response timeframe with deemed disapproval for non-response creates uncertainty and potential delays for franchisees.
- The franchisor's right to revoke supplier approval without specific cause can disrupt operations and create inventory management challenges.
Potential Mitigations:
- Thoroughly understand the supplier approval process outlined in the FDD.
- Proactively communicate with the franchisor about potential alternative suppliers early in the process.
- Document all communication and agreements with the franchisor regarding supplier approvals.
- Develop contingency plans for potential supplier disruptions.
FDD Citations:
- Item 8: "We have the right to grant, deny, or revoke approval of items, services, suppliers, or service providers based solely on our judgment and we currently do not publish our criteria for granting approvals."
- Item 8: "If you do not receive our approval within 60 days after submitting all of the information that we request, our failure to respond will be deemed a disapproval of the request."
- Item 8: "We reserve the right to... revoke approval... if any fail to meet any of our then-current criteria."
Mandatory Technology Requirements
Medium
Explanation:
- Franchisees are required to use specific hardware (iPad Pro, wireless printer, Microsoft Surface Go) and software (MOBILINK) supplied solely by the franchisor.
- This creates dependence on the franchisor's technology and potential vulnerability to obsolescence, price increases, and lack of compatibility with other systems.
- Mandatory use of 101 Mobility email addresses with Microsoft Authenticator restricts flexibility and could create integration challenges with existing systems.
Potential Mitigations:
- Clarify the costs and upgrade policies for mandatory hardware and software.
- Assess the functionality and compatibility of the franchisor's technology with other business tools.
- Understand the implications of the email and security requirements for data privacy and integration with existing systems.
FDD Citations:
- Item 8: "We will provide you with your remaining hardware requirement, including an iPad Pro, wireless printer, and Microsoft Surface Go. We are the only approved supplier for this remaining hardware."
- Item 8: "...you must license our proprietary MOBILINK software from us."
- Item 8: "We are also your designated email address account supplier... All email accounts provided must be used in conjunction with the Microsoft Authenticator for security."
Performance & ROI Risks
3 risks identified
2
1
No Financial Performance Representations
High
Explanation:
- Item 8 confirms that 101 Mobility does not provide any financial performance representations regarding earnings or revenue projections for franchisees. This lack of information makes it difficult to assess the potential profitability and financial viability of the franchise.
- Relying solely on individual franchisee experiences (Item 9) for financial assessment introduces bias and may not reflect typical results.
Potential Mitigations:
- Conduct thorough independent market research in your target area to estimate potential demand and revenue.
- Consult with existing franchisees (Item 9 encourages this) and inquire about their financial performance, but treat this information cautiously and verify it with your own research.
- Develop a realistic business plan with conservative financial projections, considering various market scenarios.
- Engage a qualified financial advisor to review the FDD and assist in developing financial projections.
FDD Citations:
- Item 8: "Other than the information presented in Item 19 of the FDD, have any of our employees… made any statement… regarding… The amount of money that others have made or that you might make… The revenue or profits… Any other financial performance information…" (Answers are implied "No" based on the structure of the document and absence of Item 19 data)
- Item 9: "Have you contacted any existing 101 MOBILITY franchisees about their financial performance?"
Dependence on Franchisor's Government Status (VA Sales)
High
Explanation:
- Item 20 highlights the dependence of VA hospital-related sales on 101 Mobility's status with the government. Changes in regulations, policies, or the franchisor's standing could significantly impact a franchisee's revenue stream, especially if it relies heavily on VA sales.
- The FDD explicitly states that franchisees are not assured of any VA hospital-related contracts or sales.
Potential Mitigations:
- Diversify your customer base beyond VA sales. Develop marketing strategies to target other market segments (e.g., private residences, assisted living facilities).
- Thoroughly research 101 Mobility's current government contracts and their stability. Inquire about any potential risks or upcoming changes in regulations.
- Develop a business plan that does not rely heavily on VA sales, at least initially, until a stable track record is established.
FDD Citations:
- Item 20: "Do you understand that, while you are in no way assured of any Veterans Administration hospital- related dealer contracts and/or open market sales, numerous variables affect our and your ability to obtain and retain such sales, including, for example, our status with the government; and that any change in status, regulations, policies or other variables, whether known or unknown by us, could therefore have a significant impact on your 101 MOBILITY Franchised Business?"
No Guaranteed Customer Referrals
Medium
Explanation:
- Item 19 states that 101 Mobility has no obligation to refer customers or business leads to franchisees, including VA-related sales or leads from any communication channel. This places the onus of customer acquisition entirely on the franchisee.
Potential Mitigations:
- Develop a comprehensive marketing and sales plan to generate leads and acquire customers independently.
- Explore local networking opportunities and partnerships to build referral sources.
- Invest in online marketing and advertising to reach a wider audience.
FDD Citations:
- Item 19: "Do you understand that you are fully responsible for developing your own customer base… and that we have no obligation to refer customers or business to your… Franchised Business, including Veteran Administration hospital-related sales, or sale leads we receive via the Internet, phone, or any other channel of communication?"
FDD Documents by Year
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FDD Year: 2025
Uploaded: 8/25/2025
FDD Year: 2024
Uploaded: 8/5/2025
FDD Documents
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