AMRAMP

Can you provide specific reasons why 3 units closed and 3 ceased operations in 2024? Were these financially-driven closures or operational challenges?

The system declined 5.26% in units over the past year while average gross sales are reported at $608,000. What percentage of current franchisees are meeting or exceeding the $20,000 minimum monthly revenue requirement?

Bottom Quartile sales are reported at $29,489, which is significantly below average. What support does the franchisor provide to underperforming locations, and what is the typical timeline before a franchisee is at risk of non-renewal or termination?

The Technology Fee is $15/month compared to a typical range of $165-$427.50 for this category. What specific technology services and tools are included in this fee, and are there any planned increases scheduled?

Your Royalty Rate of 9.0% is above the typical 6.0-7.0% range for Health & Beauty franchises. How does this rate compare to direct competitors, and is it negotiable for multi-unit operators or based on performance?

The Non-Compete radius of 100 miles is significantly broader than the typical 5.75-25.0 miles. Can you explain the business rationale for this extensive geographic restriction and provide examples of how it is enforced?

The renewal agreement includes 10 conditions that may be required at the franchisor's sole discretion. Can you provide a detailed list of these 10 conditions and clarify which are mandatory versus discretionary?

The franchise agreement lists 25 Termination Causes. How many of these are curable defaults with specified cure periods, and how many are immediate non-curable defaults? Can you provide the full list?

Given the 100-mile non-compete and mandatory binding arbitration in Suffolk County, Massachusetts, what recourse do franchisees in other states have if disputes arise, and who typically bears arbitration costs?

What is the actual closure rate versus transfer rate? Of the 3 closures in 2024, were any related to the franchisor's enforcement of the $20,000 minimum monthly revenue requirement?

Can you clarify the Personal Guarantee requirement? Are all principals and owners required to personally guarantee all franchise obligations unconditionally?

Item 19 shows substantial variance in unit performance (average $608,000 vs. bottom quartile $29,489). Can you provide sales data segmented by unit age, territory type, and franchisee background to identify success factors?

The Transfer Fee and Renewal Fee are both $10,000. If a franchisee wishes to renew and also make a transfer in the same period, are both fees applicable?

You mention mandatory binding arbitration and a required mediation step. What are the typical costs and timeframes for dispute resolution, and does the franchisor have a track record of initiating arbitration?

The operational control clause requires all AMRAMP products to be purchased from the franchisor's affiliate or designated suppliers. What is the markup on these products compared to wholesale market rates, and are there any price guarantees?

Can you provide the contact information for at least 15 current and 5 recent exit franchisees (closed within the past 2 years) so I can conduct independent reference checks?

The agreement mentions renovation or modernization of premises may be required at renewal. What are the typical costs franchisees have incurred for such upgrades, and does the franchisor provide financing assistance?

With 18% annual interest on late payments, what is the franchisor's policy on payment plans or forbearance during periods of financial hardship or reduced revenue?

The 8 curable defaults include a 24-hour cure period for health/safety violations. Can you provide examples of what constitutes a health/safety violation and how strictly this is enforced?

Given the -5.26% unit decline, what growth projections are you providing to prospective franchisees, and what marketing or operational support has been added to reverse this trend?