Can you provide details on the 1 pending litigation case, including the nature of the claim, parties involved, and expected timeline for resolution?
#1
What specific reasons led to the termination of 9 units in 2024? Were these initiated by the franchisor or by franchisees?
#2
How does the franchisor justify the 37.5% termination rate in 2024 compared to the 0% termination rate in prior years? What triggered this sudden change?
#3
Of the 11 net new units opened in 2024, how many were opened by new franchisees versus replacement locations for terminated units?
#4
Given the very low $30 monthly technology fee compared to the typical $200-$500 range, what specific technology services and tools are included, and are there planned increases to this fee?
#5
The franchisor was plaintiff in 1 litigation case. Can you explain the circumstances, outcome (if resolved), and whether similar disputes are likely to recur?
#6
What is the financial performance of the 9 units that were terminated in 2024? Can you provide their average unit volumes or profitability data?
#7
With encroachment protection listed as false, can the franchisor open additional units within an existing franchisee's territory? How is this addressed in the franchise agreement?
#8
The Territory field indicates 'PROTECTED' but Territory Exclusive is 'False.' Can you clarify what 'protected' means in this context and what protections are actually provided?
#9
Can you provide the names and contact information for at least 10 current franchisees and 5 franchisees who exited in 2024 for independent reference checks?
#10
What percentage of the 24 current units are company-owned versus franchisee-owned? How many units does the franchisor itself operate?
#11
The operational control clause requires purchasing from specified suppliers and pricing within 10% of suggested retail. How is compliance monitored, and what happens if a franchisee deviates?
#12
What specific training is required at renewal, and is there an additional cost beyond the $5,000 renewal fee mentioned?
#13
Given the personal guarantee requirement and spousal consent provisions, can you provide a sample personal guarantee form and explain the extent of personal liability?
#14
What is the average unit volume and profitability for units that have been in the system for 2, 3, and 4+ years?
#15
The system grew from 5 to 24 units in 3 years (68.7% CAGR). What is the franchisor's expansion plan for the next 3 years, and how many units are under development?
#16
How many units that opened in 2023 or earlier are still operating today? What is the actual survival rate for franchised units after 1, 2, and 3 years?
#17
Can you explain why the 1 litigation case resulted in the franchisor being plaintiff rather than responding to a franchisee claim? What was the outcome?
#18
Are there any planned changes to the fee structure, including the technology fee, renewal fee, or transfer fee in the next 12-24 months?
#19
Given the high turnover and termination rates in 2024, what operational or financial metrics trigger termination, and how much notice and opportunity to cure does a franchisee receive?
#20