Frenchies

Your transfer rate of 12.5% is more than double the typical range for health and beauty franchises. What are the primary reasons franchisees are transferring ownership, and do transfers typically occur due to franchisor approval issues or franchisee-initiated sales?

Your termination rate of 4.2% is significantly above the typical 0.0-1.95% range. Can you detail the specific defaults that led to terminations in the past 3 years and whether terminated franchisees received the full cure periods outlined in the agreement?

The franchise agreement specifies 17 non-curable defaults with only 10-30 day cure periods for curable defaults. What are the most common non-curable defaults, and have franchisees successfully cured defaults within these timeframes?

Your total potential contract term of 30 years exceeds typical franchise terms. What conditions must be met to renew beyond the initial 10-year term, and how often have franchisees successfully renewed?

The $3,000 renewal fee appears relatively modest. What costs are associated with the mandatory 'renovation/refurbishment' requirement at renewal, and can you provide examples of recent renewal costs franchisees have incurred?

Your non-compete clause restricts activity within 20 miles for 2 years post-termination. How has this been enforced, and have there been any disputes with former franchisees operating in adjacent markets?

The agreement requires purchases from 8 designated mandatory vendors. What percentage of franchisee operating costs typically come from required vendor purchases, and what controls exist on vendor pricing?

With no litigation in 3 years, have there been any disputes resolved through arbitration or mediation? If so, what were the primary points of contention?

The transfer fee of $5,000 is well below industry norms. Are there additional undisclosed costs associated with transfers, or does this low fee structure incentivize unit transfers?

Can you explain the variance between your average gross sales ($546,370) and median gross sales ($440,044)? How many units reported financial data in your Item 19 disclosure?

Your technology fee of $150 monthly is below typical ranges. What specific technology services and support does this fee include, and have there been any technology fee increases in the past 3 years?

The franchise agreement mandates personal guarantees and requires spouse signatures. How many franchisees have refused to sign spousal guarantees, and has this been enforced consistently?

With territory marked as protected but not exclusive, what specific protections exist to prevent franchisor encroachment, and have there been any conflicts over new studio placement?

In 2022, you experienced 8 unit exits (2 closures, 2 terminations, 4 transfers) from a 23-unit system. What specific factors or market conditions led to this higher exit activity, and how has the system stabilized since?

The dispute resolution clause mandates binding arbitration with class action waiver and jury trial waiver. Has this arbitration structure been tested, and what was the outcome of any arbitrated disputes?

What training and ongoing support is included in the franchise fee versus paid separately? Can you itemize all pre-opening and post-opening support services?

The agreement grants the franchisor rights to establish maximum, minimum, or other pricing requirements. How frequently are franchisees required to adjust pricing, and have price controls impacted unit profitability?

Can you provide contact information for franchisees who transferred ownership or had their franchise terminated, so I can understand their experiences firsthand?