Fantastic Sams

The system has declined from 614 units three years ago to 512 units currently (9.4% in one year). What are the primary factors driving unit closures, and what specific actions is the franchisor taking to reverse this trend?

With 8 litigation cases in the last 3 years and 2 cases currently pending, what are the nature and outcomes of these cases, and do any involve franchisee disputes or alleged franchisor misconduct?

Sales performance is significantly below category norms (median $298,718 vs. typical $414,271). What is the franchisor's breakdown of unit profitability, and what percentage of franchises achieve positive cash flow in their first three years?

The technology fee of $12.50 per month is substantially lower than typical fees of $165-427.50 per month. What technology services and support does this fee cover, and are there any planned increases?

Why is the transfer fee set at $30,000 when the typical range is $7,500-20,000? What does this fee cover, and can it be negotiated?

The closure rate of 10.6% annually is significantly above typical rates. Can you provide a detailed breakdown of closure reasons (e.g., franchisee decisions, franchisor terminations, economic hardship, relocation) for the past three years?

With 6 cases where the franchisor was the plaintiff, what were these cases about, and what were the outcomes? Are any still pending?

The non-compete clause of 2 years and 5 miles is narrower than the typical range. Will the franchisor enforce this if I exit, and are there any situations where it would not apply?

What is the non-renewal rate of 3.9% driven by? How many franchisees did not renew due to franchisor-imposed conditions, and how many chose not to renew voluntarily?

The agreement requires binding arbitration in Wilmington, Delaware with no jury trial rights. What is the average cost and duration of arbitration disputes, and do you have data on common disputes that have gone to arbitration?

Personal guarantees are required from all guarantors and potentially spouses. If the franchise fails, what are my personal liability exposure and the franchisor's indemnification scope?

The renewal conditions include required capital expenditures for remodeling and equipment updates. What is the typical cost of these capital expenditures, and are these amounts specified in the franchise agreement or determined by the franchisor?

All products and supplies must be purchased from franchisor-approved suppliers. Can you provide the list of approved suppliers and typical markups or pricing controls applied by the franchisor?

The System Health score is 27/100, significantly below the typical range of 50-75. What operational and support metrics contribute to this low score?

With 11 non-curable defaults available to the franchisor for termination, what are examples of these defaults, and how have they been applied in past terminations?

The top quartile units generate $544,100 in sales while the bottom quartile generates $150,433. What factors differentiate high-performing units, and can the franchisor provide specific guidance on location selection and market viability?

The system has been contracting for three years. Are there any turnaround initiatives, marketing campaigns, or operational improvements planned for the next 12-24 months?

The territory is protected but not exclusive. Can the franchisor open additional units in my territory, and what are the specific conditions or protections against encroachment?

Regarding the 2 pending litigation cases: what are the nature of these cases, which party initiated them, and what is the expected timeline for resolution?

The Risk Factors score is 48/100, below the typical range of 64-80. What specific risk factors are contributing to this below-average score?