Can you provide detailed information about the 1 unit closure in 2020 and the 2 other unit exits that year? What were the circumstances, and were they related to operational challenges?
#1
The franchise has grown from 7 to 14 units in one year (100% growth). How many of these new 7 units are newly opened franchises versus conversions or acquisitions of existing veterinary practices?
#2
Gross sales figures ($46,118 median, $52,290 average) are significantly below typical pet services franchises. Are these figures annualized or represent a shorter operating period? Can you clarify the reporting methodology?
#3
Your contract lists 43 non-curable default provisions compared to the typical 15-21. Can you identify the top 10-15 most commonly invoked termination clauses and explain whether any franchisees have been terminated for these causes?
#4
The royalty rate of 7.5% is above the typical 6.0-7.0% range for this category. How does this compare to competitors, and is there any flexibility in this rate based on volume or performance?
#5
You charge a $175 monthly Technology Fee but have a $0 Ad Fund. How is the Technology Fee utilized, and why is there no mandatory advertising fund contribution?
#6
The non-compete clause specifies 50 miles, which exceeds the typical 13.75-32.5 mile range. How is this 50-mile radius determined and applied, especially given your exclusive territory model?
#7
Can you provide the complete list of 43 termination causes and clarify which are curable (with the 30-day cure period) versus non-curable (immediate termination)?
#8
Your agreement requires arbitration with no class action rights, jury trial waiver, and mandatory individual dispute resolution. How many franchisees have pursued arbitration, and what were the outcomes?
#9
The 2-year post-termination non-compete covers "any system location operated by the franchisor, affiliates, or other franchisees." Does this mean a terminated franchisee cannot work in veterinary medicine within 50 miles of any easyvet location system-wide?
#10
Your Item 19 shows only 14 current units. How many of these 14 units are actually reporting financial data? Can you confirm the number of reporting units for the median and average sales figures cited?
#11
Transfer Rate is 7.1% (above the typical 4.23% range). Why are units being transferred, and what approval process exists for franchise transfers?
#12
The renewal clause requires payment of 10% of the then-current franchise fee ($45,000) plus facility modernization. For a franchisee in year 10, how much would renewal realistically cost in total?
#13
Can you provide the approval matrix for franchisor-approved suppliers? Does the franchisor or its affiliates supply veterinary equipment, pharmaceuticals, or practice management software directly?
#14
How many franchisees have attempted renewal at the end of their initial 10-year term, and how many were approved versus denied based on the 7 renewal conditions?
#15
Given the rapid growth from 7 to 14 units, what support infrastructure has been added to training, operations, and field support teams to maintain quality?
#16
The dispute resolution clause mandates arbitration instead of litigation. Are arbitration costs split equally, and what are typical arbitration expense ranges for franchise disputes based on your experience?
#17
All owners must execute personal guarantees making them personally liable for all breaches. Can you clarify whether this extends to spouse guarantees and whether any assets are protected?
#18
Termination Causes include 43 provisions but 30-day cure only for curable defaults. Can you provide examples of 5 non-curable defaults that would trigger immediate termination without cure opportunity?
#19
What is the current franchisee satisfaction rate, and how many units in operation today are in their first year, renewal term, or post-renewal? This context would help assess the sustainability of the 100% growth rate.
#20