AlphaGraphics

The monthly technology fee of $1,526 is significantly higher than typical for Business Services franchises. What specific technology services and systems are included in this fee, and has it remained constant or increased since franchise inception?

With one pending litigation case against the franchisor, can you provide details about the nature of this dispute, the parties involved, and the expected timeline for resolution?

The system has lost 15 units over 3 years (242 to 227). Can you break down what percentage of these closures were due to franchisor terminations versus voluntary business closures, and what were the primary reasons for each?

Unit transfers spiked to 17 in 2023 compared to 7 in 2022 and 10 in 2024. What factors drove this significant increase in transfers, and were there any structural changes to the franchise system that year?

Financial performance data shows top quartile sales of $2,780,464 but bottom quartile sales of only $399,168—a 7x difference. What explains this wide performance variance, and what characterizes the bottom quartile underperformers?

The transfer fee of $49,750 is substantially higher than the $5,250-$19,500 range typical for this franchise type. Is this fee applied to all transfers, and are there any circumstances under which it is waived or reduced?

Non-compete restriction is limited to 2 years and 5 miles. For a location-based business, how does this narrower restriction compare to your ability to protect existing franchisees from direct competition in adjacent territories?

The renewal fee is calculated as 30% of the then-current initial franchise fee ($14,925 currently). How frequently has the initial franchise fee increased over the franchise system's history, and what projections exist for future increases?

What are the 7 specific conditions that franchisees must meet to qualify for the 10-year renewal option, and how many franchisees have successfully renewed versus been denied renewal in the past 5 years?

Item 19 financial performance data includes units reporting—can you clarify how many active franchisees provided financial data, what the reporting percentage is, and whether reported sales include corporate-owned units?

The franchise agreement includes 14 non-curable defaults that can lead to termination. Can you provide the complete list of these non-curable defaults and examples of how they have been applied in past terminations?

With mandatory binding arbitration and class action waivers in your dispute resolution clause, how many franchisee disputes have been arbitrated in the past 5 years, and what have been the outcomes?

Personal guarantees are required from entity owners and their spouses. If a spouse objects to or is unfamiliar with the franchise agreement terms, how is their understanding and consent documented?

What support and training services justify the 100/100 support training score, and are all of these services included in the ongoing fees or are there additional costs for specialized training or consulting?

The system shows negative unit growth of -2.2% over the past year. What is the franchisor's strategic plan to stabilize or grow the system, and what milestones or metrics indicate success or failure?

Can you provide details on the one pending litigation case, including: when it was filed, by whom, the claimed amount, the subject matter, and the franchisor's position?

How many franchisees fell into the bottom quartile sales range ($399,168 or less) over the past reporting year, and what support or remediation does the franchisor offer to underperforming units?

The technology fee is $1,526 monthly ($18,312 annually). Are there alternatives to this platform, can franchisees opt out, and what happens if the franchisor discontinues or significantly modifies these technology services?

Of the 6 units that 'ceased other' in 2023 and the other 'ceased other' closures, what do these exit codes indicate, and how do they differ from formal closures or terminations?