Great Steak

What are the specific details and outcomes of the 8 cases where the franchisor was defendant? Are there patterns in the nature of these disputes?

Can you provide details on the 2 pending litigation cases, including the claims and expected timeline for resolution?

You initiated 2 cases as plaintiff—what were the nature of these cases and what were the outcomes or current status?

The system has declined from 31 units to 24 units over 3 years. What factors have contributed to these closures and transfers?

In 2022 alone, 4 units closed and 4 ceased operations. What specific circumstances led to these exits?

Given that median gross sales are $465,400, how does this compare to franchisor projections in Item 19, and what is the typical unit profitability?

The technology fee of $75 monthly is notably low compared to other QSR franchises. What systems and support does this cover, and are there additional technology costs not included?

Why does the franchise offer only one 5-year renewal option with no further renewal rights? How will franchisees be impacted if they don't qualify for renewal?

The non-compete clause is 2 years/10 miles—is this enforced, and have there been disputes or litigation specifically related to non-compete violations?

What does the 120-day advance notice requirement for renewal actually entail, and what are the specific conditions franchisees must meet to qualify?

Can you explain the cure periods in the termination clause, particularly the less-than-24-hour cure period for social media violations? How is this enforced in practice?

You require binding arbitration for all disputes administered by the American Arbitration Association. What are the typical costs and timelines for arbitration in your disputes?

The personal guarantee is required from all principals and their spouses. Under what circumstances have you enforced these guarantees against franchisees personally?

Territory is non-exclusive with no encroachment protection. Can you guarantee that you will not open company-owned or franchised units that directly compete with my location?

What is included in the ongoing support and training given your high Support & Training score of 95/100? How often do franchisees receive in-person training or support?

Of the 24 current units, how many are profitable, and what is the average unit volume and profitability by year of operation?

Have there been any class action litigation or regulatory investigations by state franchise authorities against Great Steak?

What percentage of franchisees who opened 3 or more years ago are still operating, and what percentage have renewed or are planning to renew?

Given the investment score of 83 (above typical range), what justifies the higher initial investment, and what additional benefits or equipment does a franchisee receive?

The System Health score is 40 (below typical range). What is the franchisor's plan to improve unit economics and reverse the declining unit count?