Bandag

What specific factors drove the accelerating closure trend from 5 closures in 2022 to 15 closures in 2024?

The franchise fee of $2,500 is significantly below the industry typical range of $25,000-$49,500. Does this lower fee correlate with reduced franchisor support or training compared to competitors?

With a 5-year initial term and 5-year total potential term, what is the renewal process? Can franchisees renew beyond 5 years, and what conditions must be met?

The system shows zero terminations by Bandag while closures increased from 5 to 15 units over 3 years. Are failing franchisees choosing to exit voluntarily rather than be terminated?

Transfer fee of $1,500 is below typical range. What restrictions or conditions exist on unit transfers, and has the low fee resulted in high turnover?

With no exclusive territory and no encroachment protection, how does Bandag prevent the franchisor or other franchisees from opening competing locations nearby?

The contract requires exclusive purchase of all materials and equipment from Bandag. What are the average annual material and equipment costs as a percentage of gross revenue for existing franchisees?

What specific performance metrics trigger non-renewal at the 5-year mark, given that 4 renewal conditions exist but details are limited?

Can you provide Item 19 financial performance data, including median/average gross sales and number of units reporting, to evaluate profit potential?

The cure period for non-payment defaults is 7 days. How many franchisees have been subjected to default notices due to payment failures in the past 3 years?

Personal guarantees are required from shareholders, partners, members, and their spouses. What happens to these guarantees if the franchise is transferred to a new owner?

Bandag has broad audit rights including dealership inspections and operational observation. How frequently do audits occur, and what are typical findings?

The technology fee is $425 but no royalty rate is listed. Is $425 a one-time fee, annual fee, or per-transaction fee?

What specific support and training does Bandag provide during the initial 5-year term and upon renewal?

With 12 unit closures in 2024, are there geographic clusters of failures, or are closures dispersed across the system?

The initial term is significantly shorter (5 years) than the typical range (10-15 years). What was the rationale for this shorter contract period?

How many of the 162 current units are profitable, and what is the average ROI timeline for a new franchisee?

What are the specific non-curable defaults listed in the termination clause that would result in immediate termination without cure opportunity?