FIX AUTO

Can you provide details on the 3 cases where FIX AUTO initiated litigation as plaintiff? What were the disputes, outcomes, and whether they involved franchisees?

Of the 12 cases where FIX AUTO was named as defendant, how many involved franchisees versus other parties (suppliers, employees, regulators), and what were the primary complaint categories?

What is the status and nature of the 8 pending litigation cases? Are any expected to settle or proceed to trial, and do any involve systemic franchise agreement disputes?

The termination rate of 3.8% significantly exceeds the typical 0.0-1.9% range. What are the primary reasons franchisees are being terminated, and are there common operational deficiencies?

Why is the transfer rate of 7.1% elevated compared to the typical 0.6-5.6%? Are transfers primarily due to financial underperformance, owner exit, or other factors?

Given the 5-year initial term (shorter than typical 10-15 years), what are the specific renewal conditions listed in the 9 renewal triggers, and how difficult is it in practice to renew?

The franchise fee of $10,000 is notably below typical ($25,000-$49,500). Does this lower entry cost correlate with higher termination rates, or is there another explanation?

What is the rationale for a 0-year, 0-mile non-compete clause when the automotive category typically requires 1-2 years and 5-25 miles? Can a franchisee immediately compete after exit?

With 20 termination causes listed (above the typical 13-18), can you provide the full list and clarify which are most commonly invoked in actual franchise terminations?

The royalty rate of 3.0% is significantly below typical (5.4-7.5%). Are additional fees or service charges not reflected in the royalty structure, or is the franchisor compensated differently?

Sales figures ($2.7M median, $3.2M average) far exceed typical ranges. Are these figures audited, and do they include all revenue sources or select locations? How recent is the Item 19 data?

Of the 34 total unit exits (closed or terminated) between 2022-2024, how many occurred in years 1-3 of franchisees' contracts versus later years, to assess early-stage success rates?

The system grew 10 units net (4.9%) while terminating 27 units and closing the same number. What is the acquisition/recruitment rate driving this growth?

Territory is protected but not exclusive. Can you define what 'protected' means operationally, and what restrictions exist on franchisor-owned or company-operated locations in a franchisee's territory?

With 8 pending litigation cases, are any related to territory disputes, performance standards, or franchise agreement interpretation? Could pending outcomes materially affect existing franchisees?

The technology fee of $25/month ($300/year) is substantially below typical ($156-$493/month). What systems and support are included, and are there additional technology or software costs?

Can you explain the 20 termination causes in the agreement? Specifically, how many are subjective (e.g., 'failure to maintain standards') versus objective (e.g., missed royalty payments)?

What is the historical renewal rate at contract expiration? Of the franchisees reaching the end of their initial 5-year term, what percentage exercised renewal options?

Given the elevated litigation and termination rates, what specific operational or financial support does FIX AUTO provide to franchisees to improve sustainability and reduce failures?

Are there franchisees willing to provide references who have successfully renewed or transferred their units, and are there any who have declined renewal or faced contested terminations?