Apex Leadership Franchising

Can you provide details on the 1 litigation case on record, including the nature of the dispute, parties involved, resolution, and whether it resulted in any policy changes?

The termination rate of 2.5% is significantly above the typical range of 0-0.83% for childcare franchises. Can you explain the primary reasons for these 3 terminations in 2025 and provide examples of the 24 non-curable defaults cited in the agreement?

What specific circumstances led to the 3 closures in 2025 versus the 5 closures in 2024? Were these voluntary closures or franchisor-initiated terminations?

The technology fee is $0/month, compared to the typical range of $122-474 for similar franchises. Are technology services and support included in the royalty fee, or are additional tech costs incurred separately?

The total potential contract term is 40 years (10 initial + 3 renewals). Can you clarify the renewal terms, including renewal fee structure, performance requirements for renewal eligibility, and whether the franchisor has discretion to deny renewal?

With 24 non-curable termination causes listed in the agreement, can you provide the complete list and explain which causes most frequently led to the terminations observed in the past 3 years?

The agreement requires a 2-year non-compete with no specified mileage radius. Does this mean the non-compete applies nationally to all Apex locations, or is it limited to the franchisee's assigned territory?

Late payments incur interest at 18% per annum and mandatory weekly marketing fees have no cap. Can you provide examples of typical weekly marketing fee amounts and explain how these fees can vary?

Personal guarantees are required from all owners and spouses. Can you clarify the full extent of personal liability, including whether it extends beyond franchise-specific debts to franchisor corporate debts?

The agreement requires purchases from 6 categories of franchisor-designated or approved suppliers only. Can franchisees request alternative suppliers if they can demonstrate equivalent quality and pricing, and what is the approval process?

You maintain control over fundraising revenue percentage split according to the agreement. How is this split determined, can it be changed unilaterally by the franchisor, and are there any guarantees regarding franchisee revenue thresholds?

The mandatory mediation and binding arbitration clause waives jury trial and class action rights. Are there any circumstances under which franchisees can pursue claims in court rather than arbitration?

Can you provide the specific 10-day cure period details for monetary defaults and the 72-hour cure period for health/safety hazards? What happens if a franchisee disputes the franchisor's determination that a default occurred?

Net unit growth has been positive (13 units added in the past year), but what percentage of this growth comes from new franchisees versus existing franchisees opening additional units?

With median gross sales of $773,113 and average gross sales of $916,578, can you clarify what percentage of franchisees achieve sales above or below the median, and are there significant performance variances by location type or region?

The renewal fee is $5,000 for a 10-year renewal term. Are there any other renewal-related costs such as retraining fees, equipment upgrades, or facility updates required at renewal?

Has the franchisor initiated any system-wide changes, policy updates, or operational requirements since the 2023 financial performance data was collected that could impact current franchisee profitability?

The agreement specifies a minimum royalty payment with termination risk if not met. What is the minimum royalty amount, how is it calculated, and can it be waived or reduced during low-revenue periods?