Fundraising University

What are the specific reasons for the 13 unit closures in 2024? Were these financially-driven closures, ownership transitions, or other operational issues?

Given the 19.4% closure rate in 2024 versus historical rates of 7.5% (2023) and 9.4% (2022), what has changed in the past year that has driven this acceleration in exits?

The franchise fee of $60,000 exceeds typical ranges by $5,000-$20,000. How is this premium justified compared to comparable franchises in childcare and education?

Technology fees are $750/month, significantly above the typical $122-$474 range. What specific technology services and platforms are included, and can these fees be reduced or negotiated?

The ad fund rate of 3.0% is 50% higher than typical (1.0-2.0%). How is this additional marketing spend allocated, and what measurable results do franchisees receive?

Can you provide details on the single litigation case initiated against the franchisor? What was the nature of the dispute, and how was it resolved?

The non-compete restriction of 5 miles is significantly narrower than the typical 10-25 miles. What protection does this provide franchisees, and why is the radius smaller than industry standard?

Total Potential Term is 10 years with no mention of renewal options, while typical franchises offer 15-20 years of potential term. What happens at the end of 10 years—do franchisees lose their business?

Item 19 shows median gross sales of $1,303,286, which is 40% above typical. What is the range of sales performance among units, and how many units fall below the $150,000 minimum sales threshold within 6 months?

You require minimum gross sales of $150,000 within the first 6 months and charge 18% annual interest on late payments. How many franchisees failed to meet this threshold in the past 3 years?

Personal guarantees are required from all owners and spouses, with unconditional indemnification for all franchise-related losses. Can you clarify what 'all losses' includes and if there are any liability caps?

The agreement mandates exclusive purchases from the franchisor or approved suppliers across 8 product categories. What are these categories, and how are prices determined? Are there any price benchmarking or audit mechanisms?

Binding arbitration must occur in the city and state where the franchisor's headquarters is located, and class action waivers are mandatory. What is the typical cost of arbitration, and who bears these costs?

Can you provide a list of the 10 non-curable defaults and 2 curable defaults? How strictly are these enforced, and have any franchisees been terminated for non-curable defaults?

System Health scores at 6/100, far below the typical 50-75 range. What specific metrics drive this low score, and what is the franchisor doing to improve system health given the recent closures?

Risk Factors score at 57/100, below the typical 70.25-80 range. What are the primary risk factors identified, and how do they relate to the high closure rate?

Contract Terms score at 55/100, below typical 60-65. Which contract provisions are considered unfavorable, and are any of these negotiable with existing franchisees?

Of the 7 units transferred in 2024, how many transfers were approved, and in how many cases did transfers fail due to franchisor conditions or the prospective buyer's inability to qualify?

What support and training are provided given the System Health score of 6/100? Can you detail the ongoing coaching, operational support, and marketing resources available to franchisees?

Are there any mass closure announcements, regulatory actions, or investigations pending against the franchisor or the system? Has the FTC or state regulators inquired into the franchise operations?