Giordano's Pizza

The transfer fee of $20,000 is above the typical range for casual dining franchises ($5,000-$18,000). Can you explain the rationale for this premium transfer fee and whether it applies to all transfer scenarios?

Termination rate stands at 3.3%, more than double the typical range (0.0-1.8%) for casual dining franchises. Can you provide specific reasons for the terminated units during the past 3 years?

The system has declined from 65 to 60 units over 3 years with no transfer activity. Have any franchisees attempted to transfer their units and been denied, or has the lack of transfers been due to low demand?

What were the specific reasons for the 5 unit closures in 2022, the highest year of exits? Were these closure decisions driven by franchisees or initiated by the franchisor?

Renewal conditions require payment of 15% of the then-current franchise fee plus mandatory capital expenditures. What is the estimated cost range for these mandatory capital expenditures at renewal?

Can you provide details on the 8 specified renewal conditions mentioned in the franchise agreement? Are any of these conditions difficult for typical franchisees to satisfy?

The dispute resolution clause mandates individual arbitration with waiver of class action rights. Has the franchisor or any franchisee filed arbitration claims under this provision, and if so, what were the outcomes?

The personal guarantee requirement covers all owners of the franchisee entity. Can you clarify what obligations trigger the indemnification requirements and any historical examples of indemnification claims?

With 4 terminations in 2023 (the second-highest year of exits), what performance metrics or contract violations led to these terminations?

Are there any recurring operational or financial challenges among the closed or terminated units that prospective franchisees should be aware of?

The non-compete clause is 2 years / 15 miles. How strictly is this enforced, and have there been any cases of franchisees violating this clause or the franchisor pursuing enforcement actions?

What support or performance metrics exist to help franchisees avoid the termination scenarios that affected 3.3% of the system annually?

Given the Item 19 financial data shows median sales of $1.6M but average sales of $2.2M, what explains this significant gap? How many units fall below the median?

Are there specific geographic markets or unit types (delivery-only vs. full-service) that have higher or lower exit rates?

The ongoing fees score of 60/100 is below the typical range. Can you clarify if there are any fees beyond royalty and ad fund that franchisees should anticipate, such as technology, marketing, or system fees?

What is the typical timeline and process for renewal, and how far in advance should franchisees begin planning for the 15% renewal fee and capital expenditure requirements?

Have any franchisees renegotiated the transfer fee of $20,000, or is this a fixed, non-negotiable fee?

What has driven the improvement in the exit trend from 2022 to 2024, and are there operational changes that contributed to this stabilization?