CENTURY 21 Real Estate

Given 8 litigation cases in 3 years and 6 pending cases, can you provide details on the nature of these disputes and whether any resulted in settlements affecting franchisor operations or franchisee rights?

The franchise has no renewal options and zero renewal conditions. How does this impact long-term planning, and what happens to franchisees at the end of the 10-year initial term?

The system has declined from 1,902 to 1,734 units over 3 years. What is the franchisor's strategy to address this decline, and are there specific market conditions or operational issues driving these closures?

Can you explain the disparity between the low ad fund rate of 0.5% versus typical rates of 1.0-3.0%? How is marketing support funded, and has this affected franchisee visibility or lead generation?

145-148 units closed annually over the past 3 years. Are these closures primarily due to market conditions, franchisee profitability issues, or franchisor actions, and what support is provided to struggling franchisees?

The personal guarantee clause requires spouses to sign agreements covering all franchisee obligations. What specific liabilities extend to spouses, and can they be released from this guarantee under any circumstances?

With no non-compete clause (0 years / 0 miles), what prevents a franchisee from opening a competing real estate business immediately after franchise termination, and how does this affect franchisee investment protection?

The transfer rate of 3.2% is above typical range. What are the primary reasons franchisees are transferring their units, and what are the franchisor's approval criteria for transfers?

Can you clarify the difference between 'closed,' 'terminated,' and 'ceased other' in your unit data, where 'ceased other' accounted for 68-115 units annually? What does 'ceased other' encompass?

Of the 12 cases where the franchisor was defendant, what were the primary allegations, and have any resulted in judgments or settlements affecting franchisee obligations or franchisor policies?

Given the above-average Risk Factors score of 32 (below typical range), what specific operational or contractual risks should prospective franchisees understand?

The franchise fee of $25,000 is positioned as having above-typical investment cost scoring. What is included in this fee, and are there additional startup costs beyond the franchise fee?

With territory marked as 'protected' but 'not exclusive,' what exactly does protected territory mean, and under what circumstances could the franchisor add another franchisee to your territory?

The 3 cases initiated by the franchisor suggest the system actively pursues legal action. What are typical reasons the franchisor initiates litigation against franchisees?

Can you provide financial performance data (Item 19) or median/average unit volumes, even if not formally disclosed, to assess realistic income potential?

The $5,000 transfer fee represents 20% of the initial franchise fee. Are there additional transfer costs beyond this fee, and are there restrictions on transferring to family members?

The contract has a 1.7% non-renewal rate. When franchisees are not renewed, is this due to franchisor choice, franchisee choice, or performance failures? What happens to these units?

Has the declining unit base affected franchisor support services, and if so, how will this impact new franchisees' access to training, technology, and marketing resources?