Best In Class Education Center

Given the system has declined from 51 units to 37 units over 3 years with 9 closures in 2024 alone, what specific challenges are existing franchisees facing that are driving these closures?

Can you provide detailed financial performance data (Item 19) broken down by location, territory type, and year of establishment to understand which unit configurations are underperforming?

The royalty rate of 12.0% is significantly higher than the typical 7.0-8.0% for this category—how is this higher rate justified relative to the support and services provided?

With a median gross sales of $219,476, what are the typical operating expenses and net profit margins franchisees should expect, and how do these compare to your profitability projections?

Why does the System Health score register at 0/100, well below the typical 50.0-75.0 range, and what is the franchisor doing to improve system metrics?

The transfer fee of $27,000 exceeds typical ranges significantly—what does this fee include, and are there any payment plans or reductions for transferring to existing franchisees?

Can you explain the discrepancy between the 5-year initial term versus the typical 10-year term for this franchise category, and what motivated this shorter commitment period?

With 25 termination causes listed in the contract compared to a typical 15-22, which of these causes have actually been invoked against franchisees, and are any subject to cure periods?

Given the declining unit count, what is your recruitment strategy for attracting new franchisees, and what realistic growth projections are you providing to prospective franchisees?

The technology fee is $100 monthly—significantly lower than the typical $122-$474 range—what technology services and platforms are included, and what are the upgrade costs if additional features are needed?

Can you provide a breakdown of the 19 closures from 2022-2024 by specific reasons (e.g., owner choice, insufficient revenue, competitive pressure, location issues) to better understand closure drivers?

How is the non-exclusive territory policy managed when you indicate 'protected' territory? Can the franchisor open new units or approve new franchisees within an existing franchisee's protected area?

With ongoing litigation costs at zero, does the franchise agreement indemnify franchisees against litigation costs, or are franchisees responsible for any legal disputes initiated by the franchisor?

What support and training does the franchisor provide given the high turnover rate, and are there documented metrics showing how franchisees perform in their first 2-3 years?

The 2-year non-compete extending 25 miles post-termination is significant—has this restriction been enforced, and are there any documented cases of franchisees challenging this clause?

Can you clarify whether the $2,500 renewal fee applies for each 5-year renewal period, and are there any other required investments or upgrades during the renewal process?

Given that top quartile sales average only $310,026, what percentage of units fall below the median of $219,476, and what differentiates top performers from struggling locations?

What mandatory supplier relationships exist across the 6 service categories mentioned, what are the cost implications, and are there periodic competitive bidding processes to ensure franchisees receive fair pricing?

The arbitration clause waives jury trial and class action rights—have any franchisees formally objected to these terms, and is the franchisor open to negotiating dispute resolution provisions?

With a System Health score of 0/100, what specific operational standards, training metrics, or quality benchmarks is the franchisor implementing to stabilize and grow the system?