Gatsby Glass

What specific defaults triggered the termination of 32 franchises in 2024? Were these related to financial performance, operational violations, or other factors?

Can you provide details on the 2 pending litigation cases currently against the franchisor? What are the alleged violations and potential financial exposure?

Given the 34% termination rate in 2024, what support and training improvements has the franchisor implemented to prevent similar mass terminations in 2025?

What is the average unit economics for franchises that were terminated in 2024 compared to those that remain operational?

Why does the technology fee of $792/month fall significantly above the industry typical range? What specific services and features does this include?

You advertise a minimum monthly royalty of $500 regardless of revenue. How many franchisees are currently paying only this minimum, and what is the median revenue threshold where franchisees exceed the minimum?

How does the franchisor define 'protected territory' given that exclusivity is not guaranteed? What specific encroachment protections exist beyond the non-compete clause?

Of the 44 units added in 2024 to offset the 32 terminations, how many were sold to existing franchisees versus brand new franchisees, and what is the early-stage survival rate for cohorts less than 12 months old?

Can you explain the disconnect between your strong financial performance metrics (median sales of $883,693) and the high 34% termination rate? What percentage of terminated franchises were performing above or below median sales?

The advertising fund rate of 3.0% exceeds typical rates. How is this fund allocated, and what specific marketing support do franchisees receive? Can you provide historical ad spend allocation for the past 24 months?

Given that 14 defaults are non-curable versus 1 curable default, what are the specific non-curable violations and how do they differ operationally or financially from typical franchises?

What is the timeline and process for renewal? Do all 9 renewal conditions carry equal weight, and how many franchisees have successfully renewed since the franchise started?

Can you provide the cohort analysis for unit survival rates by vintage year? Specifically, what percentage of the 50 franchises from 2023 remain operational today?

How does the mandatory local advertising expenditure of the greater of $2,000 monthly or [percentage] compare to actual network advertising spend? Are franchisees able to offset this with corporate fund contributions?

What recourse do franchisees have if the franchisor terminates their agreement? Has any terminated franchisee filed a claim against the franchisor related to the 2024 terminations?

The royalty rate of 5.0% is below industry typical rates (6.0-7.0%). Is this intentionally low to attract franchisees, and is there any plan to increase royalties for new or renewing franchises?

Can you explain the rationale for the 1.5% monthly late payment interest rate? Has this been applied frequently, and to what percentage of franchisees?

How many of the current 94 units are company-operated versus franchisee-operated? What financial performance do company-operated units generate compared to franchisee units?

Given the high turnover rate, what is your franchisee satisfaction score, and do you conduct regular franchisee surveys or hold advisory council meetings to identify operational challenges?