Aaron's Sales & Lease Ownership

Of the 18 cases initiated against the franchisor, what are the primary allegations or claims, and how many have been resolved versus remain outstanding?

Can you provide details on the single pending litigation case, including when it was filed and the nature of the claim?

The 2 cases where the franchisor was plaintiff—what were the outcomes, and were these franchise-related disputes or other matters?

What is driving the closure of units (59 in 2024, 42 in 2022)? Are these primarily due to franchisee financial difficulty, market conditions, or franchisor decisions?

The transfer fee of $6,000 is below market typical range ($8,333-$20,000)—is this fee negotiable, and what services or approvals are included in the transfer process?

The agreement lists 22 termination causes, which is above the typical 14.0-19.25 range. Can you provide the complete list and clarify which causes are curable versus immediate?

Renewal requires mandatory remodeling to current standards at franchisee expense—what is the estimated cost of this remodeling, and are there flexibility provisions for franchisees with financial constraints?

Support & Training scores 100/100 while Investment scores 70/100 (below typical 75.0). What specific training and support justify the high training score, and what aspects of investment costs fall short?

The Ongoing Fees score is 60/100 (below typical 62.0). Are there additional fees beyond the 6% royalty and 2% ad fund that franchisees should expect?

What is the cure period for each of the 22 termination causes, and are the 3-day cure periods for computer system failures typical across the franchise system?

Can you explain the $2,500 successor fee charged at renewal—is this in addition to the $6,000 transfer fee, and what does it cover?

With encroachment protection available but territory not exclusive, how does the franchisor define and enforce protected boundaries to prevent cannibalization?

Has the franchisor been involved in class action litigation with franchisees, and if so, what were the primary claims and resolutions?

Of the 3 litigation cases in the past 3 years, were any related to renewal denials, terminations, or transfer restrictions?

The net unit decline is -3.35% annually. What is the franchisor's growth strategy to stabilize or reverse this trend?

Can you provide a breakdown of unit closures by location (by state or region) to identify whether closures are geographically concentrated?

What percentage of franchisees successfully renew their agreements at the 10-year mark, and what are the most common reasons for non-renewal?

Are there any ongoing regulatory investigations or complaints filed with state franchise administrators related to Aaron's?

The 2-year/10-mile non-compete restricts franchisees post-exit. Has this restriction been challenged in any of the litigation cases, and are there circumstances where it's waived or modified?

What financial performance benchmarks or metrics are franchisees expected to achieve in years 1-3, and what support is provided if a unit underperforms?