Children's Orchard

What were the specific circumstances and reasons for the 2 litigation cases filed against the franchisor in the past 3 years, and what were the outcomes or current status?

Given the unusually high ad fund rate of 999.99%, can you clarify how this fee is calculated, what it funds, and provide documentation showing how it has been spent over the past 3 years?

The system has closed 8 of 15 units in 3 years (34.8% turnover). What specific operational, market, or support issues have contributed to this high closure rate?

Can you provide a detailed breakdown of the 8 closed units by location, closure date, and stated reasons for closure (e.g., owner exit, profitability issues, market conditions)?

What support or remedial actions has the franchisor implemented in response to the high closure rate and declining unit count?

Your average unit gross sales of $398,868 are approximately 23% below the category average. What are the benchmarks for profitable unit operation, and at what sales level do units typically become unprofitable?

The transfer rate of 5.6% is elevated compared to the typical range of 0.9-4.4%. What is driving the higher number of ownership transfers, and what approval process and fees apply?

Can you provide contact information for 8-10 closed unit owners or operators so prospective franchisees can understand closure circumstances and lessons learned?

The renewal conditions require remodeling and capital expenditures at franchisee expense. What is the typical cost and timing for these renewal-related improvements?

How many of the 2 litigation cases involved current franchise disputes versus settled matters, and are there any pending regulatory investigations or complaints filed with state franchise authorities?

Given the mandatory arbitration clause and Minneapolis venue requirement, how will a franchisee in another state manage dispute resolution costs and logistics?

The technology fee of $42/month is notably lower than typical. What systems and technology support are included, and are there additional technology costs or requirements not reflected in this fee?

Can you clarify the personal guarantee requirement and whether spouses are typically required to personally guarantee franchise obligations?

What specific conditions must be met to qualify for the 1 renewal option, and what happens at the end of the 20-year potential term if renewal is not granted?

The System Health score is 0 (well below the 32.3-70.0 typical range). What metrics or indicators contribute to this score, and what does it signify about franchisor support?

Are there any class action lawsuits, regulatory complaints, or investigations currently pending involving this franchise that may not appear in the 3-year litigation summary?

What is the average time to profitability for newly opened units, and what percentage of units meet or exceed the median sales benchmark of $351,303?

Can you provide financial performance data (Item 19) showing the distribution of unit sales across the current system and year-over-year sales trends for existing units?

How does the 4.0% royalty rate compare to your support and service commitments, and is this rate subject to increase during the franchise term or renewal periods?

Given the declining unit count, is the franchisor actively recruiting and onboarding new franchisees, and what is the new unit development forecast for the next 3 years?