What specific circumstances led to the 1 pending litigation case initiated against the franchisor, and what is the expected timeline for resolution?
#1
Can you provide details on the 7 units terminated in 2024? What were the primary reasons for termination, and were they initiated by the franchisor or franchisees?
#2
The franchise fee of $59,500 is above the category typical range. What specific value or services justify this premium pricing compared to competitors?
#3
The termination rate of 8.8% is more than double the typical range for this category. Is this trend improving, stable, or worsening, and what factors contribute to terminations?
#4
Despite 45.5% unit growth in the past year, the system experienced 18 total unit exits in 2024. What percentage of franchisees from 2023 remained active in 2024?
#5
How is the minimum annual royalty calculated, and what is the typical minimum amount franchisees must pay regardless of sales performance?
#6
Given the 2-year, 25-mile non-compete clause and the 18% annual late payment penalty, how many franchisees have faced enforcement of these provisions in the past 3 years?
#7
Can you clarify the 7 renewal conditions required to renew beyond the initial 10-year term? Are there performance or financial thresholds that franchisees must meet?
#8
The franchise offers up to 30 years total potential term (10 initial + 2 renewals of 10 years). What is the historical renewal rate for franchisees reaching the end of their initial 10-year term?
#9
Are the financial performance figures in Item 19 (median $589,495 gross sales) based on all active units or a subset? How many franchisees reported performance data?
#10
What does the 'Ceased Other' category represent in the unit history, and why did 1 unit cease in this manner in 2024?
#11
The royalty rate is 6% plus 2% ad fund plus $285 technology fee. Are there any other ongoing fees or charges not listed in the franchise fee schedule?
#12
How does encroachment protection work in practice? What specific remedies or compensation are provided if the franchisor encroaches on a franchisee's exclusive territory?
#13
Of the 25 net new units added in 2024, how many were transferred franchises versus new franchise sales?
#14
What support and training are provided during the initial onboarding, and are there ongoing training requirements to maintain franchise status?
#15
Can you provide references for at least 5 franchisees who have been operating for the full 10-year initial term and chose to renew?
#16
The franchise went from 0 units 3 years ago to 80 today. What was the growth strategy, and when did franchisee exits begin relative to the rapid expansion?
#17
Are the median/average gross sales figures gross revenue before or after cost of goods sold, subcontractor costs, and other direct expenses?
#18
What is your policy regarding franchisee buyouts or franchisor repurchase options if a franchisee wishes to exit before contract expiration?
#19