Bishops Cuts and Color

The system declined from 47 units 3 years ago to 40 units today. Can you provide details on the specific reasons for the 7-unit decline, particularly the 5 closures and 3 terminations that occurred in 2022?

What specific support or operational changes were implemented after the 2022 contraction to improve unit stability, and what metrics demonstrate improvement since then?

Your territory score of 60 is below the typical range for Health & Beauty franchises. Can you clarify what aspects of territory protection or support contributed to this below-average score?

Your transfer fee of $5,000 is significantly lower than the typical range of $7,500-$20,000. What does this fee cover, and are there additional costs associated with unit transfers that franchisees should anticipate?

The franchise agreement specifies 8 curable defaults and 17 non-curable defaults allowing immediate termination. Can you provide examples of the most common curable defaults that have triggered termination in the past?

What is the average cost and timeline for the 'complete renovation and refurbishment' required as a condition of renewal, and how frequently are franchisees required to perform this upgrade?

Can you clarify the implementation and enforcement of exclusive supply requirements across the 8 specified categories? What percentage of franchisee costs typically go to franchisor-approved suppliers?

Your minimum royalty requirement (the greater of actual weekly royalties or a specified minimum) creates a revenue floor regardless of business performance. What is the minimum weekly/monthly royalty amount franchisees must pay?

The binding arbitration clause restricts franchisees' rights to court proceedings and jury trials in Texas. Has the franchisor used arbitration to resolve disputes with franchisees, and what were the outcomes?

Your personal guarantee and spouse liability requirements apply to all owners. Has the franchisor pursued personal guarantees against individual owners when franchisee entities failed, and in what circumstances?

Support & Training scores 100, above the typical range. What specific support programs or training differentiate Bishops Cuts and Color, and how have these contributed to unit performance stability?

Can you provide a breakdown of the 5 units that closed in 2022—how many were forced closures (franchisor-initiated) versus voluntary, and what were the primary failure factors?

With zero reported litigation cases over 3 years, how does the franchisor handle disputes with franchisees, and are there alternative dispute resolution mechanisms beyond arbitration?

The non-compete clause extends 2 years and 20 miles from any system location. If a franchisee operates in proximity to multiple system locations, could the 20-mile radius create overlapping restrictions that limit post-franchise employment opportunities?

What is included in the Item 19 financial statements—do they represent average performance, median performance, or a range? What percentage of units achieve or exceed the reported median sales of $542,225?

The franchise agreement reserves the right to modify prices of franchisor-supplied goods and services. How frequently have supply costs or royalty-related charges increased since the franchise program began?

Can you clarify the dispute resolution process—when mediation is required at franchisor's option before arbitration, how long has mediation typically lasted, and what percentage of disputes are resolved through mediation versus proceeding to arbitration?

Your 30-year total potential term is significantly longer than the typical range of 15.5-20 years. What happens to the business after the second 10-year renewal—is a third renewal possible, and under what conditions?