Bricks 4 Kidz

Can you provide details on the 7 litigation cases initiated against the franchisor? What were the primary claims, outcomes, and resolution amounts?

The 2023 data shows 30 units classified as "ceased other." What specific circumstances led to these closures, and were they voluntary or franchisor-directed?

With a median gross sales of $89,534, how do franchisees achieve profitability after paying the 7% royalty, 2% ad fund, $100 monthly technology fee, and the stated $600 monthly minimum royalty?

Why is the support and training score (73) below the typical range for this category? What specific training and ongoing support is provided to franchisees?

The non-renewal rate is 9.7% annually. What are the primary reasons franchisees choose not to renew their agreements?

The franchise fee of $33,000 is significantly lower than the category typical range of $40,000-$55,000. What factors explain this lower entry cost?

Can you explain the three renewal conditions that apply to franchise agreements, and how they compare to competitors' renewal requirements?

With a 10-year initial term and no renewal options disclosed, what happens to franchisees at term end if they wish to continue operating?

The 18% monthly interest rate on late payments is mentioned as a legal obligation. How frequently do franchisees incur these penalties, and what is the average amount owed?

The non-compete clause covers any business deriving more than 5% of revenue from STEM programs for children within 25 miles for 2 years. How broadly does the franchisor interpret "STEM programs"?

What is the breakdown of the 3 litigation cases in the past 3 years by type (e.g., breach of contract, non-payment, intellectual property, wrongful termination)?

The mandatory advertising minimum is mentioned as a legal obligation. What is the minimum annual advertising spend requirement beyond the 2% ad fund?

Are there existing franchisees currently operating below the median sales of $89,534? If so, how do they remain financially viable?

Can you provide references from 5-10 franchisees who have exited in the past 2 years to understand their reasons for closure?

The transfer fee of $7,000 is below market rate. Are there additional approval requirements or conditions not reflected in the stated transfer fee?

What specific support improvements does the franchisor plan to address the support and training score below the category range?

The system grew 19 net units in one year but declined 18 units the year before. What operational or market changes explain this volatility?

How many franchisees have had their agreements terminated by the franchisor (beyond the 1.3% termination rate) for cause versus allowing non-renewal?