Can you provide details on the 6 litigation cases filed against the franchisor, including the nature of each dispute, the outcome or current status, and the years they were filed?
#1
What is the status of the 1 pending litigation case, and how might an unfavorable outcome affect franchise operations or franchisor stability?
#2
Given the franchisor initiated 1 litigation case, was this against a franchisee, and if so, what were the circumstances and outcome?
#3
The Financial Performance score of 40 is below typical for this category. Does the franchisor have any Item 19 financial performance data it can voluntarily disclose, and if not, what is their rationale?
#4
Can you explain why the Investment Costs score of 44 is significantly below the typical range, and what additional costs beyond the stated $40,000 franchise fee should franchisees expect?
#5
The Support & Training score of 97 is above typical. What specific training and ongoing support programs justify this high score, and how are they delivered?
#6
The transfer fee of $5,000 is substantially lower than the typical range of $8,937.50-$18,437.50. Are there other conditions or fees associated with transferring a franchise that are not captured in this fee?
#7
The technology fee of $100 monthly is below typical. What technology systems and services are included in this fee, and are there additional technology costs franchisees may incur?
#8
The franchise agreement requires purchase of inflatable attractions from Galaxy America Inc, an affiliate of the franchisor. How are prices for these products determined, and are franchisees required to purchase exclusively from this affiliate or can they source from competitors?
#9
What is the current status of the franchise system in terms of active units? The data shows zero units across all time periods—is this a recently launched franchise, and if so, how many franchisees have actually been recruited to date?
#10
The non-compete clause extends 2 years post-termination across the Protected Territory. If a franchisee's franchise is terminated, what is the geographic scope of this restriction (the data shows 'N/A miles')?
#11
The renewal conditions require meeting 8 specific criteria including renovating the location to current standards. What is the estimated cost of renovation, and can the franchisor impose mandatory renovations beyond the 10-year initial term?
#12
All franchise owners must sign an Owner's Guaranty. What happens to personal assets if the franchisee defaults, and are there any limits on the franchisor's indemnification claims against owners?
#13
The franchisor has the right to set minimum and maximum pricing. How much flexibility do franchisees have in setting their own pricing strategy, and can the franchisor mandate price reductions?
#14
The Risk Factors score of 68 falls below the typical range. What specific risks scored below typical, and how do these risks compare to other franchises in the Sports & Recreation category?
#15
Can you provide references from at least 5 current franchisees operating under the Do The Beach brand, including their experience with the litigation cases and franchisor support?
#16
What are the requirements for equipment from 'approved vendors' only, and what process exists for franchisees to request approval of alternative vendors or suppliers?
#17
The franchise agreement has 5 legal clauses scored 4/5 as franchisor-favorable. Are there any provisions that have been modified or removed in recent versions, and would the franchisor be willing to negotiate any of these terms?
#18
What is the timeframe for curing the 3 types of curable default mentioned in the termination clause, and what happens if a franchisee partially cures a default within the 10 or 30-day windows?
#19
Given the early-stage nature of the system (zero current units reported), what growth projections does the franchisor have, and what support exists to help franchisees succeed in establishing unit profitability?
#20