FUSE Service

What were the specific reasons for the 4 franchise terminations in 2024? Were these franchisor-initiated or franchisee-initiated non-renewals?

Given the 11.4% termination rate exceeds the typical range of 0.0-6.8%, what operational or performance issues are driving these higher-than-average terminations?

The franchise agreement lists 25 termination causes, which is above the typical range of 14-21. Can you provide a summary of the most common causes cited in recent terminations?

Why is the transfer fee set at $3,000 when the typical range for this type of franchise is $7,500-$15,000? What are the conditions and restrictions on franchise transfers?

Can you explain the rationale for the 3.0% royalty rate, which is significantly below the industry typical range of 6.0-7.0%? Are there any planned increases or conditions that would trigger higher royalties?

The franchise fee of $24,000 is substantially below typical fees of $45,000-$59,900. What is included in this lower fee, and are there any additional startup costs not reflected in this amount?

With a 3-year CAGR of 80.0% and 105.9% one-year growth, what is the franchisor's unit growth strategy for the next 3 years, and how does unit quality control factor into this aggressive expansion?

The non-compete clause specifies 2 years within 25 miles. How is the 25-mile radius measured (from franchisee location, territory boundaries, or other reference point), and are there any circumstances under which this restriction can be reduced or waived?

What is the minimum monthly royalty requirement mentioned in the financial obligations, and under what circumstances would it apply if a franchisee's monthly sales are below the threshold?

The franchise agreement requires exclusive purchasing from franchisor-designated suppliers. Can you provide a list of these suppliers and typical pricing for common products and services?

What were the circumstances of the 4 closures (non-termination exits) in 2024? Were these voluntary shutdowns, relocations, or other reasons?

Given the 11.4% exit rate in 2024, what percentage of franchisees from the 2022 cohort (6 units) remain active today?

The $150 non-compliance fee plus 18% annual interest applies to late royalty payments. Are there any grace periods before these penalties are assessed, and what percentage of franchisees have incurred these fees?

Territory is protected but not exclusive. What does 'encroachment protection' mean in practice, and has the franchisor opened multiple units in the same protected territory?

Can you clarify how the 10-calendar-day cure period for certain defaults and 30-calendar-day cure period for operational defaults are determined? What is the difference between 'certain defaults' and 'operational defaults'?

What support and training are included in the franchisor's 95/100 category score, and are there any ongoing training requirements or costs beyond the royalty and technology fees?

The renewal fee is $6,000. Are there any conditions under which renewal might be denied, or would renewal be guaranteed if the franchisee is in good standing?

If a franchisee is terminated, what happens to their client relationships and customer contracts? Can the franchisor reassign these to another franchisee?

With Item 19 disclosure showing average gross sales of $546,066, what is the median or range of unit sales? How many units were included in this calculation?

Are there any documented cases of franchisees having disputes with franchisor-designated suppliers over pricing, quality, or service, and what recourse do franchisees have if they are unsatisfied with supplier performance?