Apex Fun Run

Can you explain the spike in unit closures and ceased operations in 2023 (13 total exits) compared to other years? What were the primary reasons for these exits?

The total potential contract term of 40 years is significantly longer than typical for childcare franchises (15-20 years). What are the specific renewal conditions required for each 10-year renewal, and how frequently do franchisees successfully renew?

You charge no technology fee ($0 monthly), while competitors typically charge $122-$474 monthly. What technology support and systems are included, and are there any additional technology costs not captured in the fee structure?

The franchise agreement lists 24 non-curable default triggers, above the typical range of 15-22. Can you provide a detailed explanation of these 24 causes and provide examples of how they have been applied in practice?

What specific circumstances led to the 1 litigation case initiated against the franchisor in the past 3 years, and how was it resolved?

The non-compete clause restricts franchisees for 2 years in their territory and 'all other existing Apex franchise territories.' Can you clarify the geographic scope—does this mean national restriction, or is it limited to regions where Apex operates?

Minimum performance requirements mandate $9,000 in royalties the first year and $18,000 annually thereafter. What percentage of current franchisees achieve or exceed these minimums, and what happens if a unit falls short?

Personal guarantees are required from all owners. Are these limited to payment obligations, or do they extend to other liabilities including indemnification claims?

Late payments incur 18% annual interest. Is this rate disclosed in all franchise disclosure documents, and has this provision been enforced? If so, how many franchisees have incurred late fees?

Operational control requires purchases from approved/designated suppliers across 6 categories. Can you provide the list of approved suppliers and explain how pricing is controlled?

The renewal fee is $5,000 per 10-year term. Are there additional costs for equipment upgrades to 'current standards' at renewal, and what is the typical total upgrade cost franchisees should budget?

Dispute resolution is mandatory mediation followed by binding arbitration with waived class action and jury trial rights. Has any franchisee pursued or challenged these restrictions, and are there any pending arbitrations?

Why did your Support & Training score (78) fall below the typical range (78.3-97.8) for childcare franchises? What specific support gaps exist compared to competitors?

You require mandatory mediation and arbitration in a specific location. Where must proceedings take place, and what are the estimated costs for franchisees to pursue disputes through this process?

The 7-condition renewal requirement includes equipment upgrades. If a unit cannot afford these upgrades, what options exist—can the franchise be non-renewed, or is there flexibility?

Of the 6 units that transferred ownership in 2024, how many were franchisor-approved transfers versus situations where franchisees sought early exits?

What is included in the $49,500 initial franchise fee, and are there additional pre-opening costs not reflected in this figure (e.g., real estate, buildout, training)?

Can you provide a breakdown of the 7 units closed in 2023 by reason (e.g., owner decision, financial difficulty, location issues, other)?

The transfer fee is $7,500. Does this fee apply to internal transfers (e.g., between owners), and what is the franchisor's approval process for transfers?

Given that ongoing fees score 61 (below the 62.0 typical range), are there any additional monthly or annual fees not listed in the royalty and ad fund rates—such as technology, training, insurance, or membership fees?