What specific legal claims are associated with the 10 cases where the franchisor was named as defendant, and have any resulted in settlements or judgments against the franchisor?
#1
Of the 6 pending litigation cases, what are the primary allegations and what is the franchisor's estimated timeline for resolution?
#2
Why does the franchise agreement include no renewal rights, and what happens to a franchisee's investment and business after the initial 10-year term ends?
#3
Given the 0% non-compete radius, what prevents a franchisee from immediately opening a competing real estate business in the same territory after the franchise expires or is terminated?
#4
What specific support or technology solutions does the franchisor provide given the $0 monthly technology fee, and how does this compare to competitors offering technology services?
#5
The ad fund rate of 0.5% is significantly lower than the typical 1.0-3.0% range—how is the franchisor's national advertising funded, and what guarantees exist regarding ad fund usage?
#6
Of the 82 units closed in 2022, how many were voluntary closures versus franchisor-initiated terminations, and what were the primary reasons cited?
#7
The system has lost 118 units over 3 years—what is the franchisor's strategy to stabilize or reverse this decline?
#8
Can you provide details on the 5 cases initiated by the franchisor as plaintiff, including the outcomes and claims against franchisees?
#9
What is the median or average gross revenue for an operating franchisee, and why is Item 19 financial performance data not available?
#10
The termination clause allows 30-day cure periods for 10 types of defaults—can you provide the complete list of defaults that result in immediate termination without a cure period?
#11
Personal guarantees from all owners and spouses are required—what specific liabilities extend beyond the franchise agreement itself under the indemnification clause?
#12
Are there any geographic areas or markets where closure rates are significantly higher than others, and should prospective franchisees in those regions be concerned?
#13
What happens to transferred franchises when a franchisee exits—does the incoming franchisee receive the same rights and contract terms as the original franchisee?
#14
Given the lack of exclusive territory protection, how does the franchisor limit the number of Coldwell Banker franchises in a given area?
#15
Are there any class action lawsuits pending among the 6 pending cases, and if so, could judgments affect all franchisees systemwide?
#16
The franchise fee is $25,000 with a $5,000 transfer fee—is there a renewal fee charged if the agreement were to be renewed after 10 years, or do franchisees have no renewal option whatsoever?
#17
What training and ongoing support does the franchisor provide to justify the 5.5% royalty rate in a competitive real estate market?
#18