Fujisan Franchising Corp

Can you provide details on the 2 pending litigation cases, including the nature of claims and expected resolution timeline?

What specific factors contributed to the sharp increase in unit closures (46 to 118) and terminations (10 to 72) between 2022 and 2023, and what corrective actions have been implemented?

Why is the termination rate of 1.1% slightly above the category typical range, and what are the primary reasons for franchisee terminations?

Given the 38.0% exit rate in the past year, what percentage of departing franchisees are voluntarily exiting versus being terminated or non-renewed?

The franchise fee of $3,750 is 85% below the category typical range—what is the rationale for this significantly lower entry cost?

Why does the transfer fee of $1,500 represent only 10-30% of comparable franchises, and does this affect the franchisor's incentive to approve transfers?

What is included in the monthly technology fee of $51, and does this cover all technology services or are there additional technology costs?

The ad fund contribution of 1.0% is below the typical 2.0-4.0% range—how is system-wide marketing funded, and are franchisees responsible for individual store marketing?

Why is the initial contract term only 3 years compared to the typical 10-15 years, and what protections do franchisees have regarding renewal guarantees?

Can you explain the renewal conditions requirement to 'bring kiosks into full compliance with current specifications'—what are typical compliance costs, and is the $3,750 renewal fee separate from these compliance costs?

The franchise offers no exclusive territory and no encroachment protection—has this resulted in complaints from existing franchisees about new unit placement?

What support and training is provided beyond the 81/100 score, particularly given it falls below the typical 90-100 range for QSR franchises?

Why are spouse guarantees required in addition to personal guarantees from all entity owners, and how does this affect franchise transferability?

The franchise mandates purchases from designated suppliers for rice, vinegar, seafood, and franchisor-branded items—what percentage of franchisee costs typically go to these required purchases?

Can you provide a detailed breakdown of the 17 non-curable defaults that allow immediate termination without cure rights?

All disputes must be resolved through binding arbitration in Los Angeles County—what is the average cost and timeline for arbitration, and can franchisees appeal arbitration decisions?

Given the high transfer rate of 28.2%, what is the typical reason franchisees cite for wanting to transfer their units, and how long is the average transfer approval process?

The 3-year CAGR of 8.31% exceeds category norms—is unit growth primarily from new franchise sales, existing unit growth, or transfers of existing units?

With Risk Factors scoring only 19/100 (well below the typical 60-78 range), what specific operational or financial risks should prospective franchisees understand?

Can you provide a list of all franchisees terminated or closed in the past 2 years with their contact information so due diligence can be conducted?