Dairy Queen Montana/North Dakota

Can you provide details on the 5 cases where the franchisor was named as defendant, including the nature of disputes and outcomes?

What is the status and expected resolution timeline for the 4 pending litigation cases?

Why is the transfer rate 9.5%, significantly above the typical 0.0-7.0% range? Are these voluntary sales or franchisor-facilitated transfers?

Given the 20-year initial term, what are the renewal terms and conditions, and what is the historical renewal rate for units reaching the end of their initial term?

The non-compete clause specifies 1 year with 0 miles radius. How has the franchisor enforced this, and are there examples of former franchisees operating competing brands in the same territory?

With no exclusive territory and no encroachment protection, what prevents the franchisor from opening additional Dairy Queen units in your territory?

Can you explain the 3 cases initiated by the franchisor as plaintiff? Were these related to franchise violations, payment disputes, or other issues?

What is the average duration that transferred units operate under new ownership before potential termination or exit?

The royalty rate of 4.0% is below typical. Are there performance-based tiers or rate increases over the contract term?

Why have there been zero terminations in the past 3 years while litigation cases have increased? Does this indicate franchisor forbearance or strong franchisee compliance?

What specific operational controls are enforced through required single-source purchasing for soft drinks, equipment, and Orange Julius powders, and how does pricing on these items compare to market rates?

Given the binding arbitration clause in Missoula, Montana, what has been the typical cost and duration of past arbitration proceedings?

The renewal fee is $4,000 and transfer fee is $6,000. Are there additional reinvestment requirements or capital improvements required at renewal?

Can you provide a breakdown of the 2 units that ceased operations for other reasons in 2022? Were these franchisor-assisted closures or franchisee-initiated exits?

What support does the franchisor provide to transferred units, particularly given the high transfer rate? Are training or transition costs required?

How does the 10-day cure period for payment and reporting defaults apply in practice, and what percentage of defaults result in termination versus cure?

With a 30-year total potential term, what are your obligations regarding facility modernization, equipment upgrades, or brand compliance investments at the 20-year mark?

Are there any ongoing disputes with franchisees regarding the personal guarantee requirement or indemnification clause that led to litigation?