ECONO LODGE

What are the specific details of the 4 pending litigation cases against the franchisor, and what issues do they involve?

The system has declined by 34 units in the past year and 59 units over 3 years. What is the franchisor's strategy to address this contraction and improve unit retention?

Can you provide a breakdown of the 44 units that closed in 2024? Were these closures primarily due to financial underperformance, market conditions, or other factors?

The transfer rate declined from 65 units in 2022 to 25 units in 2024. What changes in transfer policies or market conditions contributed to this decline?

Given that you provide 0 renewal options after the 20-year initial term, how many franchisees have faced franchise termination at the end of their initial term, and what happens to their units?

The franchise agreement has 12 non-curable default events. Can you provide the complete list and explain which events most frequently trigger terminations?

What is the cure period for breaches related to operational standards and property maintenance, and how are disputes about these standards typically resolved?

Since all disputes are resolved through mandatory binding arbitration in Maryland, how many franchisees have been required to pursue arbitration, and what were the typical outcomes?

You require personal guarantees from franchise owners covering all obligations. Have personal guarantees been enforced in recent cases, and what assets have been at risk?

The technology fee is $719 annually. What specific technology services and systems does this fee cover, and has this fee increased over the past 3-5 years?

Item 19 shows financial performance data is available. Can you provide average unit volumes, occupancy rates, and profitability benchmarks for units by age and location type?

With no exclusive territory protection and no encroachment clause, has the franchisor opened competing units within existing franchisees' operating areas? If so, how frequently?

What is the average length of time between franchise acquisition and unit closure or transfer for units that have exited the system?

Of the 34 units lost in the past year, how many were in specific geographic markets or regions, and were there identifiable external factors (economic downturns, market saturation)?

The Territory score is 35, significantly below the typical range of 50-75. Beyond the lack of exclusive territory, what other factors contributed to this low score?

The System Health score is 37, below the typical range. Can you explain the key operational challenges or support gaps identified in this assessment?

Given the no-renewal policy after 20 years, how many franchisees are currently in year 18-20 of their agreement, and what communication has occurred about their options?

The Risk Factors score is 42, below the typical range of 44-75. What specific risks were identified, and what mitigation measures are in place for franchisees?

Can you provide comparative profitability data for Econo Lodge franchises versus competing budget hotel franchises in similar markets?

What support and training changes has the franchisor implemented in response to the declining unit count and pending litigation cases?