APLUS

The franchise fee of $15,000 is substantially lower than the typical range of $25,000-$40,000 for retail franchises. What accounts for this significantly reduced upfront cost, and are there additional or deferred fees not reflected in the stated franchise fee?

The $600 monthly technology fee is more than double the typical range for retail franchises. What specific technology systems and services are included, and can this fee be reduced or eliminated if a franchisee uses their own systems?

You have initiated 1 litigation case as a franchisor and currently have 1 pending case. Can you provide details about the pending litigation, including the nature of the dispute, the parties involved, and the expected timeline for resolution?

The agreement lists 25 termination causes, above the typical 14-19 for retail franchises. How many of these causes are truly non-curable versus those offering cure periods, and what is the most common reason for franchise terminations in the system?

The agreement specifies unlimited guaranty and indemnification obligations for franchisees. Can you provide examples of situations where franchisees have been held liable under these clauses, and are there any caps or limits to this liability in practice?

Over the past 3 years, 11 units transferred ownership annually while only 2-3 closed. What is driving the high transfer rate, and are transferred units typically returning to profitability under new ownership?

The non-compete clause specifies 2 years / 20 miles. How is this enforced in practice, and have there been disputes over compliance with this restriction post-exit?

The renewal conditions include 8 pre-conditions. Can you specify what 'substantial compliance with all material terms' means in practice, and how many franchisees have been denied renewal in the past 5 years?

The franchisor maintains control over supplier restrictions covering up to 90% of inventory purchases. Can you provide a sample list of approved suppliers and explain how the maximum retail pricing controls are implemented and adjusted?

The system has declined from 272 to 265 units over 3 years. Is this decline due to market conditions, intentional pruning of underperforming locations, or franchisee challenges? What is the growth strategy going forward?

With 11 unit transfers annually (4.5% transfer rate), above typical ranges, what percentage of these transfers involve ownership changes versus restructuring within the same franchisee group?

The Territory score is 50/100 with no exclusive territory and no encroachment protection. How do you prevent franchisor-owned or other franchisee locations from directly competing with existing units?

Can you provide the Item 19 Financial Performance Representation (if available), including average unit volumes, profitability data, and the percentage of franchisees achieving these results?

Regarding the termination clause with cure periods ranging from 5 to 30 days, can you provide examples of defaults that are non-curable versus curable, and what support is offered to help franchisees achieve compliance?

What is the actual cost of the technology systems included in the $600 monthly fee, and what happens to franchisee data and system access if a franchisee exits the system?

The system shows stable but below-typical closure rates. What percentage of closures are due to franchisee insolvency, franchisor termination for default, or voluntary exit by the franchisee?

How are the renewal terms negotiated? Can the royalty rate, technology fee, or other terms be renegotiated upon renewal, or are they fixed as stated in the initial agreement?

Can you provide contact information for at least 10 current franchisees and 5 who have exited in the past 3 years, including the reasons for their exits and their assessment of franchisor support?