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Can you provide details on the 7 litigation cases where the franchisor was defendant, including the nature of claims, outcomes, and settlements?

What is the status of the 1 pending litigation case, and what are the allegations involved?

Why did unit transfers spike dramatically to 91 in 2024 compared to 25-31 in prior years? Are these transfers indicating financial stress or franchisor-encouraged exits?

Given the 23% transfer rate far exceeds the typical 6%, what percentage of unit owners are selling due to financial underperformance versus other reasons?

The franchise has experienced net unit decline of 5 units over the past year. What is the franchisor's strategy to stabilize or grow the system?

The 1-year turnover rate of 5.8% combined with 23% transfers indicates significant unit churn. What support or operational improvements has the franchisor implemented to retain franchisees?

What specifically triggered the legal dispute that resulted in the franchisor being plaintiff in 1 case, and what was the outcome?

Can you explain why the initial contract term is 15 years, substantially longer than the 7.75-10 year typical range, and what are the implications for franchisee exit flexibility?

The non-compete clause restricts activity within 2 years and 5 miles. How has this been enforced historically, and are there any pending disputes related to post-termination competition?

Given the mandatory renovation requirement for renewal and the total potential 35-year term, what are the estimated capital requirements for renovations across multiple renewal periods?

The renewal fee of $10,000 (40% of initial fee) plus mandatory renovations creates significant renewal barriers. What percentage of franchisees renew versus exit at contract expiration?

What are the 7 conditions precedent for renewal, and how frequently do franchisees fail to meet these conditions?

The binding arbitration clause requires disputes to be resolved in Los Angeles County. Has this location choice created accessibility or cost barriers for franchisees in other states?

With only 1 type of default being curable and 16 enumerated automatic termination events, what are examples of non-curable defaults, and have any franchisees been terminated under these automatic termination provisions?

The personal guarantee requirement includes the franchisee's spouse, putting household assets at risk. Can you clarify what specific obligations trigger spouse liability?

Median gross sales are $509,530. What is the typical break-even point, and what percentage of existing franchisees are profitable?

How many of the 395 current units are company-owned, and what is the system's overall profitability?

Given the territory is non-exclusive with no encroachment protection, has the franchisor opened company-owned or franchised units within existing franchisee territories, and what has been the impact on franchisee performance?