CENTURY 21

What is the franchisor's rationale for establishing zero renewal options in the franchise agreement, and how does this affect long-term franchisee planning?

Can you provide details on the 6 pending litigation cases, including the nature of claims, parties involved, and expected timeline for resolution?

Given the below-typical ad fund rate of 0.5% compared to the industry range of 1.0-3.0%, how does Century 21 allocate marketing support to franchisees, and are there supplementary marketing programs available?

What specific factors contributed to the net loss of 168 units over the past 3 years, and what actions is the franchisor taking to stabilize or grow the system?

Can you explain the elevated transfer rate of 3.2% (above the typical range of 0.0-2.2%)? Are these transfers primarily between existing franchisees or to new owners?

The franchise agreement includes a 30-day cure period for curable defaults but allows immediate termination for 7 non-curable defaults. Can you clarify what constitutes a non-curable default?

Personal guarantees from all owners and spouses cover unlimited scope of franchise obligations. Can you provide examples of how unlimited indemnification has been applied in practice?

With zero renewal rights stated in the agreement, what protections exist if the franchisor decides not to renew a franchisee's agreement at the end of the 10-year term?

How many of the 2 cases initiated by the franchisor resulted in judgments or settlements, and what were the outcomes?

Can you provide a breakdown of the 431 unit closures over the past 3 years by cause (economic, voluntary exit, franchisor action, etc.)?

Given the required $1,000,000 general liability insurance, are there additional insurance requirements or costs not reflected in the franchise fee structure?

What is the typical unit transfer fee timeline and process, given the $5,000 transfer fee noted in the disclosure?

Can you clarify whether the 10-year initial term is standard for all franchisees, or if variations exist based on location or circumstances?

With no territorial exclusivity, how does Century 21 define and enforce encroachment protection for existing franchisees?

What is the actual average franchisee profitability or revenue, and why is Item 19 financial performance data not provided in the disclosure?

Among the 6 pending cases, how many involve franchisee disputes versus third-party claims?

Does the franchise agreement permit franchisees to operate multiple units or convert to area representative status?

What support does Century 21 provide during the 10-year term to help franchisees adapt to market changes, given the inability to renew?

Can you provide examples of the 115 units that 'ceased other' in 2023, as this category represents the largest single exit type that year?