Amazing Athletes

The financial performance data shows average unit sales of $119,776 and median sales of $106,307, which are less than half the typical range for comparable franchises in this category. What factors explain this significant revenue gap, and what is the franchisor doing to support units in achieving higher sales volumes?

Transfer rate of 6.8% and termination rate of 3.7% are both above typical ranges for childcare franchises. Can you provide specific reasons for the terminations in recent years and whether there were systemic issues or isolated incidents?

Unit closures spiked to 10 units in 2023 before declining to 8 in 2024. What market conditions or operational changes contributed to this spike, and what preventive measures has the franchisor implemented?

Renewal conditions total 11 requirements, exceeding the typical range of 6-9. What are these specific renewal conditions, and what percentage of franchisees currently do not meet them or are at risk of non-renewal?

The franchise agreement requires minimum gross revenues of $100,000 in the ninth year for renewal eligibility, yet median unit sales are currently $106,307. How many current franchisees fall below this threshold, and what support exists for struggling units?

The dispute resolution clause mandates binding arbitration in New York regardless of franchisee location. For franchisees outside New York, what are the estimated costs of participating in arbitration, and has this clause been invoked in any disputes?

Personal guarantees are required from anyone owning 5% or greater interest, with spouses also liable for financial obligations. How many franchisees have had these guarantees called upon, and under what circumstances?

The termination clause provides only 10 days to cure defaults. Can you explain which defaults are considered non-curable and provide examples of situations where franchisees have been terminated for non-curable defaults?

Late payment fees are assessed at 1% of gross revenues plus interest. Given that the bottom quartile of franchisees generates only $35,269 in annual sales, how many franchisees have incurred these late payment penalties in the past 3 years?

With zero litigation cases over 3 years, is this reflective of strong franchisee satisfaction, or are there other dispute resolution mechanisms (informal settlements, arbitrations not in public record) that may not be captured?

What specific support and training is provided to franchisees, given that the Support & Training score of 73 is below the typical range of 78.3-97.8 for this category?

The franchise agreement includes 10 curable defaults and 12 non-curable defaults. Can you provide the complete list of non-curable defaults and clarify what happens if a franchisee cures the same issue more than once?

Encroachment protection is noted as available. Can you describe how the franchisor protects individual territories and provide examples of situations where encroachment has been prevented?

The non-compete clause specifies 2 years and 10 miles. How is this enforced, and have there been instances where former franchisees have competed within this radius post-exit?

What percentage of current franchisees were acquired through transfers versus new unit sales, and what support does the franchisor provide to transferred units?

Item 19 financial performance data is provided. Over how many franchisees are these averages and medians calculated, and what percentage of the current 162-unit system is represented in this data?

The non-renewal rate is 1.2% annually. How many franchisees have chosen not to renew in the past 3 years, and what reasons have they cited?

Given the 8% royalty rate, $200 monthly technology fee, and 1% ad fund, what is the franchisor's total revenue for 2024, and how much of that is reinvested in support, training, and system improvements?

The renewal fee is $7,500. Does this fee cover all renewal costs, or are there additional expenses franchisees must bear to renew their agreement?