Escapology

What was the nature of the 1 litigation case initiated against the franchisor in the past 3 years, and has it been resolved?

Can you provide details on the 2 unit exits in 2022 (1 closure and 1 other cessation)? What were the circumstances and reasons?

The non-compete restriction is 1 year and 10 miles, below the typical 2-year restriction. Can you explain the rationale for this shorter restriction period?

With 22 non-curable defaults in the termination clause, what are the most common reasons franchisees face termination, and do you track data on default notices issued?

The transfer fee of $5,000 is significantly lower than the typical range of $8,937.50-$18,437.50. Are there any restrictions on who franchisees can transfer to, or additional vetting fees?

You require mandatory minimum royalties of $1,000-$3,000 monthly regardless of sales performance. How many franchisees fall below these thresholds in their first few years of operation?

Personal guarantees are required from all principals and spouses. Are there any circumstances where this requirement can be waived or modified?

The agreement requires purchasing all equipment, fixtures, and inventory from designated suppliers. Can you provide a list of approved suppliers and typical markup rates or price ranges?

What support and training is provided to justify the 100/100 support & training score, and how does this compare to competitor franchise offerings in the escape room category?

The median gross sales of $682,427 assumes the location is profitable. What is the break-even point, and how long does it typically take franchisees to reach profitability?

Can you clarify the $250 late payment fee policy? Are there other penalties or interest charges applied to late royalty payments?

Investment costs score 57/100, below the typical 75/100 for this category. What is the typical total initial investment including real estate, buildout, and working capital?

How many of the 75 current units are profitable, and what percentage of units fail to reach the median gross sales figure of $682,427?

The system grew from 53 to 75 units in 3 years. How many of these new units are new locations versus transfers from other franchisees?

Are there any geographic markets where unit density has created encroachment issues despite the exclusive territory protection?

The renewal fee is $5,000. Are there any rate increases for renewal, or does the royalty structure remain the same?

What is included in the $499 monthly technology fee, and has this fee increased since the franchise system's inception?

Can you provide references from at least 10 current franchisees, including those who have been operating for 1 year, 5 years, and 10 years?

The Item 19 financial performance disclosure is available. Do you have any performance data segmented by location type (mall, downtown, suburban), age of unit, or geographic region?

What happens to a franchisee's territory if they choose not to renew after the initial 10-year term? Is there a right of first refusal or non-compete for the territory?