The technology fee of $75/month is significantly below category norms. What services and tools are included in this fee, and how does it compare to competitors?
#1
The franchise fee of $27,250 is substantially lower than the typical $40,000-$55,000 range for this category. What is included in the startup costs to reach profitability?
#2
System units have declined from 368 to 328 over the past 3 years. Can you provide detailed reasons for these 40 closures and what factors contributed to the accelerating closure rate (30 to 38 units annually)?
#3
The 1-year turnover rate of 11.0% is more than double the typical 5.53% maximum. What is your strategy to improve unit retention?
#4
Transfer rates have increased significantly from 9 units in 2022 to 23 in 2024. Are franchisees voluntarily selling their units due to profitability concerns, territory saturation, or other factors?
#5
The 7-year initial term and 7-year total potential term are below category standards. Why does this franchise offer shorter terms, and what happens if a franchisee wants to continue beyond 7 years?
#6
Renewal conditions count is 3 versus a typical 6-9. What are the specific conditions required to renew, and how strictly are they enforced?
#7
The termination rate of 1.4% is above the typical 0.83% maximum. What are the primary reasons for franchisor-initiated terminations, and are there early warning systems to help franchisees avoid this?
#8
Can you explain the non-renewal rate of 2.3% and provide examples of recent franchisees who chose not to renew and their reasons?
#9
The System Health score of 31 is significantly below the typical 50-75 range. What specific metrics contributed to this low score, and what improvements are planned?
#10
Support & Training score of 72 is below the typical 78.25-97.75 range. What ongoing training and support programs are available to franchisees throughout their tenure?
#11
Territory is marked as exclusive, but given the -5.48% annual growth and declining units, how does the franchisor handle territory adjustments or consolidation?
#12
Item 19 financial data is available. Can you provide the median and average gross sales figures for operating units, unit profitability timelines, and break-even analysis?
#13
The transfer fee of $2,000 is substantially below typical fees of $7,400-$20,000. Are there additional costs or franchisor approval requirements when transferring a franchise?
#14
What is the renewal fee structure, and are there other fees that increase upon renewal beyond the $250 renewal fee mentioned?
#15
Given that the franchise operates on an exclusive territory model, can you provide data on territory size, student capacity per territory, and saturation analysis?
#16
The non-compete clause specifies 2 years with no mileage restriction. How is this enforced, and are there geographic limitations to where departing franchisees can operate?
#17
Can you provide the average time to profitability for new franchisees and the percentage of units that achieved positive cash flow within the first 3 years?
#18
What percentage of current franchisees are operating at or above the median sales figures, and what support exists for underperforming units?
#19
Are there any pending litigation cases, regulatory investigations, or material disputes with franchisees that might not yet appear in formal filings?
#20