Cruise Planners

The termination rate of 4.3% is significantly above the typical range of 0.0-1.6% for this category. What are the 19 specific termination causes listed in the franchise agreement, and which causes account for the majority of terminations?

Why has the franchise fee ($10,995) and transfer fee ($7,500) been set substantially below industry norms ($35,000-75,000 and $12,500-50,000 respectively)? Is there a strategy to capture market share, or is this reflective of lower operational costs?

The initial term of 3 years is significantly shorter than the typical 15.0-20.0 years for this franchise category. Why was this term length chosen, and what is the renewal rate for franchisees completing their initial term?

Territory is non-exclusive with no encroachment protection. Can you provide specific examples of how franchisees are protected from competing Cruise Planners locations in their operating area?

What percentage of the 2 litigation cases initiated against the franchisor in the past 3 years were related to territorial disputes, franchise agreement enforcement, or operational performance?

Given the 1-year/50-mile non-compete clause is unusual for this category (typical range is 0.0/0.0), how is this enforced, and have there been disputes regarding its validity or scope?

The 3-year total potential term (initial plus renewals) is dramatically below the typical 20.0-30.0 years. Does this short renewal term reflect intentional franchise churn, or is there an expectation that franchisees will consistently renew beyond 3 years?

What is the actual renewal rate for franchisees at the end of their 3-year term, and what are the primary reasons franchisees choose not to renew?

With 220 closures in 2024, 128 terminations, and only 1 transfer, what is driving the high closure and termination rates compared to the low transfer activity?

The 7.6% 1-year net unit growth significantly exceeds the typical -1.67-4.71% range. How many of these 212 new units are from existing franchisee expansion versus new franchisee recruitment, and what is the retention rate of these new units?

Technology fees of $80/month are below the typical range of $147.5-734.0. What specific technology and systems are included in this fee, and are there additional mandatory technology costs not reflected in this figure?

Why is the royalty rate 3.0% when the typical range for this category is 5.0-5.5%? Are there performance-based escalations, or does this low rate reflect a high-volume, low-margin business model?

Can you clarify whether franchisees can renew beyond the initial 3-year term, and if so, what renewal fees, rate changes, or contract modifications occur?

Of the 377 closures in 2022 declining to 220 in 2024, what percentage were voluntary closures versus franchisor-initiated terminations, and what triggered these exits?

The Contract Terms score of 65 falls below the typical 68.0-80.0 range. Which contract provisions are most favorable to the franchisor, and what negotiation flexibility exists on key terms?

Regarding the personal guarantee requirement with spouse co-guarantees noted in the legal clauses, are there any circumstances where this requirement can be waived or modified?

The indemnification clause covering all franchisor actions and judgments creates broad liability exposure. Can you clarify the limits of franchisee indemnification obligations and provide examples of claims pursued under this clause?

With only 1 transfer in 2024 compared to 220 closures, what factors prevent franchisees from transferring their units, and are there restrictions or requirements that discourage transfers?

How does the 3-year contract term affect long-term business planning for franchisees? What percentage of franchisees express concerns about the short contract length during recruitment?