Blimpie

What were the specific reasons cited in the 8 cases where the franchisor was named as defendant, and what were the outcomes or settlements?

Can you provide details on the 2 cases where the franchisor initiated litigation against franchisees, including the nature of disputes and outcomes?

What specific performance or compliance issues led to the 23 unit closures in 2022, and have remediation efforts contributed to the reduced closure rate in subsequent years?

Given the system has lost 19 units over 3 years, what is the franchisor's growth strategy, and are there plans to expand or stabilize the remaining unit base?

Why is the franchise fee ($18,000) significantly lower than the typical range ($25,000-$37,500) for this category, and does this reflect lower support or less established brand value?

Can you explain the rationale for the monthly technology fee of $75, which is substantially below the typical range of $110-$408, and what technology services are included?

What is the franchisor's position on the 8 cases where it was named as defendant—were these disputes primarily related to royalty disputes, territory encroachment, or operational support failures?

The franchise allows only 1 renewal option for 5 years, giving a maximum 15-year term versus the typical 20-30 years—what is the rationale for this shorter potential term, and what are renewal conditions?

With no exclusive territory protections, how does the franchisor prevent encroachment or competition from other Blimpie units within a franchisee's service area?

Can you provide examples of the 3 default notices or violations that would prevent renewal eligibility, and how often does the franchisor enforce the 3-default maximum rule?

Are there references available from franchisees who have operated for the full 10-year initial term and successfully renewed?

What is the average unit volume (AUV) or sales data for operating Blimpie franchises, and why is Item 19 financial performance data not being disclosed?

Of the 101 current units, how many are in their initial term versus renewal term, and what percentage of franchisees have chosen not to renew?

The non-compete clause specifies 2 years and 10 miles—how strictly is this enforced, and are there documented cases where franchisees challenged or violated this provision?

Can you clarify the 8 curable defaults with cure periods less than 24 hours mentioned in the termination clause—which operational violations fall into this category?

The personal guarantee requires coverage from spouses of all shareholders—what is the business rationale for extending liability to spouses, and is this requirement negotiable?

Given the high litigation count (13 cases, 8 as defendant), what changes has the franchisor made to its support, training, or dispute resolution processes to reduce future conflicts?

What is included in the transfer fee of $5,000, and what franchisor approval conditions must be met before a franchisee can transfer their unit to a buyer?

Are there unit economics projections or break-even timelines available, and what are typical payback periods for new franchisees given the declining system size?