Bubbles Salon

What specific circumstances led to the closure of 18 units in 2020? Were these primarily COVID-related or driven by other operational factors?

Can you provide details on which franchisees remained after 2020 and what operating conditions differ between the surviving 15 units and those that closed?

The System Health score is 0/100, well below the typical range. What metrics or factors contribute to this score, and what steps is the franchisor taking to improve system health?

Given the 54.5% unit decline in 2020, how confident is the franchisor that current unit numbers are sustainable, and what growth projections exist for the next 3-5 years?

Can you explain the discrepancy between the strong financial performance data (median sales above typical range) and the severe unit decline? Are the remaining units significantly more profitable than average?

What percentage of franchisees from 2018 are still operating today, and what is the average tenure of current franchisees?

The franchise fee of $35,000 is below typical for this category. Does this reflect intentional positioning, or were fees recently reduced?

What are the specific supplier restrictions in the 5 categories mentioned in the operational control clause, and are there opportunities to source products from alternative suppliers?

The renewal conditions require mandatory remodeling and refurbishing. What is the estimated cost of these improvements, and are these costs in addition to the $10,000 renewal fee?

Personal guarantees and spousal liability documents are required. What specific provisions of the agreement does the personal guarantee cover, and under what circumstances could it be enforced?

How much does the annual technology fee of $375 cover, and what happens if you choose not to use certain franchisor-provided technology systems?

What type of ongoing support and training is provided after the initial setup phase, particularly given the Support & Training score of 90/100?

Can you provide references from franchisees who closed in 2020 as well as current franchisees, so I can understand the decision factors from both groups?

What is the royalty calculation based on—gross sales, net sales after certain deductions, or some other metric—and what deductions, if any, are allowed?

Are there any restrictions on the types of services or product lines a franchisee can offer within the Bubbles Salon format?

How are franchisees protected against brand encroachment, and what examples exist of the franchisor enforcing encroachment protections for existing franchisees?

The non-compete is 2 years and 10 miles. Has this restriction been enforced in any departures, and are there published cases or examples?

What financial metrics (cash flow, profitability, break-even timeline) can you share from the franchisees included in the Item 19 disclosure?

If I wish to renew at the end of the initial 10-year term, what is the likelihood of approval given the recent system contraction and high renewal standards?

Are there any ongoing litigation threats, regulatory investigations, or class action suits not yet filed that I should be aware of?