360 Tour Designs

Can you provide details on the 4 units that were closed and 4 units that were terminated in 2024? What were the primary reasons for these exits?

The termination rate of 26.7% is significantly higher than the typical range for this franchise category. Under what circumstances does the franchisor initiate terminations, and were all 4 terminations in 2024 franchisor-initiated?

Why does the technology fee of $8 per month fall so far below industry standard ($53.75-$393.75)? What services are included, and are there plans to increase this fee?

The transfer fee of $25,875 substantially exceeds typical rates ($5,000-$10,000). How is this fee determined, and is it negotiable?

Median gross sales of $68,595 are approximately 19% below the lower end of the typical range. What factors contribute to the lower-than-average financial performance of units?

How many of the current 15 units are profitable, and what is the average break-even timeframe for new franchisees?

The royalty rate of 8.0% exceeds the typical range. Is this rate competitive given the reported sales performance and support levels?

Can you explain the 2 litigation cases initiated against the franchisor? What were the outcomes, and do any issues remain unresolved?

Why is the territory protected but not exclusive? How does the franchisor prevent or manage encroachment given this non-exclusive designation?

What specific repairs, upgrades, and replacements are required for renewal eligibility? What are typical costs associated with these requirements?

Given the binding arbitration clause with no right to appeal, how have previous disputes been resolved, and what has been the average cost to franchisees?

The personal guarantee requirement extends to spouses. Can you clarify the scope of liability that spouses assume under this guarantee?

What support and training is provided to franchisees? How does this support compare to competitors given the Support & Training score of 69?

Are there any patterns in which types of franchisees or territories have experienced higher exit rates in 2024?

What is the estimated customer acquisition cost and customer lifetime value for a typical franchisee given the reported sales figures?

How is the $2,500 renewal fee calculated, and are there any additional fees or costs required at the 5-year renewal point?

Can you provide references from franchisees who have successfully renewed their contracts and those who have exited voluntarily?

What has the franchisor done to address the elevated turnover rate observed in 2024, and what operational or support improvements are planned?