Flower Tent USA

Given that median unit sales are $96,007, significantly below typical retail franchises, how do franchisees achieve profitability after paying 6% royalty, 2% ad fund, and $100 monthly technology fee?

Can you provide a detailed breakdown of the 7 units that closed in 2022 and the 5 units that transferred that same year? What were the primary reasons for closure?

Support & Training scores below typical ranges (76 vs. typical 84-99). What specific training and ongoing support does the franchisor provide, and how frequently do franchisees receive it?

The transfer fee of $5,000 is below typical ranges. Is this the actual transfer fee, or are there additional costs associated with selling or transferring a franchise unit?

Why has the franchise system declined from 45 units to 41 units over 3 years? Are there growth initiatives in place to expand the system?

The agreement contains 11 termination causes but provides only 5 renewal conditions. Can you clarify what specific renewal conditions are required to maintain the franchise through the renewal period?

Can you explain why the top quartile unit sales ($131,131) are approximately one-sixth of the typical range for retail franchises? Is this business model fundamentally different from competitors?

Personal guarantees are required from all owners with 5% or greater equity interest, including spouses. Can you clarify the extent of personal liability and what events would trigger enforcement?

The franchise disputes must be brought in federal district court rather than arbitration. Can you explain the rationale for this requirement and whether litigation costs are typically high in franchise disputes?

With zero transfers in the past 2 years and a 0.0% transfer rate, what percentage of franchisees have expressed interest in selling their units but been unable to do so?

What is the renewal fee of $5,000? Is this applied per renewal option, and are there any conditions under which renewal fees could increase?

Can you provide Item 19 data broken down by unit age, location, and whether franchisees meet revenue targets? What percentage of units are in the bottom quartile sales range?

The Ongoing Fees score is 60 (below typical 62.0). Are there any additional fees beyond the 6% royalty, 2% ad fund, and $100 technology fee that franchisees should be aware of?

How many of the unit closures over the past 3 years occurred within the first 2-5 years of operation versus later in the franchise relationship?

Given the 2-year / 10-mile non-compete, can franchisees operate other retail flower businesses after exiting, and has the franchisor enforced this clause?

Can you clarify whether the Risk Factors score of 76 (above typical 65-75.25) reflects specific operational or financial risks unique to Flower Tent USA?

What percentage of franchisees have renewed their franchise agreements at the end of their initial 10-year term, and what is the typical renewal process?

Are there any pending legal disputes, regulatory investigations, or complaints from franchisees that are not yet formally litigated?

The Investment Costs score is 87 (above typical 75.0). Does this reflect lower initial investment requirements, or are there hidden costs not captured in the franchise fee?