Exit Factor

The franchise has grown 224% over 3 years with zero unit exits. What is the average tenure of current franchisees, and how many have completed at least one full year of operation?

Four litigation cases were filed in the past 3 years. What were the nature and outcomes of these cases, and were any franchisee disputes included?

The initial contract term is 35 years with one 35-year renewal option (70 years total). What is the business rationale for such an extended term compared to the typical 5-10 year initial terms in this sector?

What specific conditions must franchisees satisfy to qualify for the 35-year renewal option, and what happens if these conditions are not met?

With only 11 termination causes listed in the contract, what are the most common grounds for franchisor termination, and have any franchisees been terminated to date?

The non-compete clause restricts activity for 2 years within 10 miles. How is this enforced, and are there any geographic exceptions or modifications available through negotiation?

Can you provide the Item 19 financial performance statement showing the $319,007 average gross sales figure, including the number of units reporting and the timeframe?

What support, training, and marketing assistance is provided to justify the 8% royalty rate, and how does this compare to your competitor offerings?

Since the franchise is experiencing rapid growth from a very small base, what contingency plans exist if growth slows or market conditions change?

Are there any franchisee references who have been with Exit Factor for less than 2 years, and what has their experience been with the 35-year contract term?

The binding arbitration clause waives class action rights. Under what circumstances might a franchisee dispute arise, and what is the typical cost and timeline for arbitration?

As a personal guarantor on the franchise agreement, what personal assets and liabilities would an individual franchisee be exposed to if the business fails?

What is the renewal fee of $1,500, and are there additional renewal costs or requirements not reflected in this fee?

How many of the current 34 units are within their first 12 months of operation, and what is the performance profile of this newer cohort?

Given the 750% unit growth in the past year, what recruitment and quality control measures are in place to ensure franchisee viability and brand consistency?

The contract includes encroachment protection for exclusive territory. Have any encroachment disputes occurred, and how were they resolved?

What happens to a franchisee's territory rights if they fail to renew at the end of their 35-year initial term?