Abrakadoodle

Given the 10.8% exit rate in the past year—more than double the typical range for childcare franchises—can you provide specific reasons for the 4 unit closures in 2024 and whether they were related to operational, financial, or competitive factors?

Your median gross sales of $127,273 are approximately 42% below the typical median for this category. Can you explain what factors contribute to this sales performance gap and whether this is typical across your entire system?

With a 24.3% turnover rate over 3 years, can you provide details on franchisee profitability at different unit scales and what support or adjustments you've made to improve unit retention?

Your franchise fee of $25,400 is significantly below typical fees in this category ($40,000-$55,000). What is included in your startup costs, and are there additional required investments not reflected in the franchise fee?

The monthly technology fee of $49 is substantially lower than the typical range of $122-$474. What technology and software services are included, and are there any additional technology costs or mandatory upgrades franchisees should expect?

Your contract offers only 4 renewal conditions compared to the typical 6-9 for this category. Can you outline the specific conditions franchisees must meet to renew, and what flexibility exists in renegotiating terms at renewal?

The total potential term of 10 years is notably shorter than the typical 15-20 years. How does this shorter potential term affect long-term business planning for franchisees, and what is the renewal process if a franchisee wishes to continue beyond 10 years?

With a 2.7% termination rate above the typical 0.0-0.8% range, can you describe the specific grounds for termination and provide examples of recent terminations and the circumstances that led to them?

Although no litigation has been filed in the past 3 years, are there any ongoing disputes, complaints, or regulatory investigations involving franchisees that have not yet resulted in formal litigation?

Can you provide the names and contact information for 5-10 franchisees who have closed their units in the past 2 years so prospective franchisees can understand their experiences and reasons for exit?

Your Financial Performance section shows significant variation in unit sales. Can you break down the sales range by unit type, location, and age of franchise to help prospective franchisees understand realistic performance expectations?

The non-compete clause extends for 2 years post-termination or expiration. How broadly is 'substantially similar services' interpreted, and would a former franchisee be restricted from opening an unrelated children's business?

Your arbitration clause requires individual rather than class-wide disputes. Have any franchisees raised concerns about this limitation, and can franchisees opt out of arbitration or pursue litigation in court?

The guaranty agreement requires all principals with more than 5% ownership to personally guarantee franchise obligations. What are the typical debt levels and obligations franchisees should expect to personally guarantee?

Can you provide a detailed breakdown of the $197,062 average gross sales by revenue source (tuition, programs, merchandise, etc.) and what expenses franchisees typically incur to achieve this revenue level?

With territory marked as protected but not exclusive, what specific encroachment protections exist, and have any franchisees filed complaints about competing Abrakadoodle locations in their territory?

Your System Health score of 35/100 falls well below the typical range of 50-75 for childcare franchises. What specific improvements is the franchisor making to strengthen system performance and support?

Are there transfer fees or approval processes for franchisees who wish to sell their unit, and what is the franchisor's policy on transfers to family members versus third parties?

Can you provide financial statements or audited reports from the past 3 years to verify the Item 19 financial performance data and ensure the sales figures are representative of current system performance?

Given the higher-than-typical termination rate, what support and training programs does the franchisor provide to help franchisees succeed, and what is the average duration a franchisee receives ongoing support after opening?