Hawaii Fluid Art

In 2023, 3 units were closed and 3 units were terminated from the 24-unit system. Can you provide the specific reasons for each termination and closure?

The termination rate of 12.5% is significantly above the typical range of 0.0% for this franchise category. What specific operational or financial triggers led to these terminations?

What is the average unit volume (AUV) or gross sales data for operating units? While Item 19 is included, specific sales figures were not disclosed.

The franchise fee of $65,000 is approximately 18% higher than the typical range of $39,500-$55,000. How does this premium justify the value proposition compared to competitor franchises?

The monthly technology fee of $950 exceeds typical ranges. What specific technology services and platforms are included in this fee, and are these mandatory or optional?

You mention 22 non-curable defaults in the termination clause. Can you provide a complete list of all 25 termination causes and clarify which 22 are non-curable?

Given the 300% net unit growth in one year, what was your acquisition strategy, and how did you onboard and support this rapid expansion?

The 10-day cure period for non-payment defaults is relatively short. Are there circumstances where this period is extended or waived?

Can you provide an itemized breakdown of what the 8 mandatory supplier categories include and what percentage of typical monthly expenses these represent?

The agreement requires a minimum royalty of $750/month or 8% of gross revenue, whichever is greater. How many franchisees are currently subject to the minimum, and what does this imply about their sales volume?

Late payment fees include $100 plus 18% annual interest. Has this policy been enforced, and what percentage of franchisees have incurred these charges?

The non-compete clause restricts activity for 2 years within 10 miles post-termination. How is this enforced, and are there any exceptions for franchisees who exit voluntarily?

What support systems were in place for the 3 units that closed in 2023 before they ceased operations?

Are there any pending or recently settled litigation matters not reflected in the formal litigation history?

The transfer fee is $10,000 and renewal fee is $3,000. Are these fees negotiable, and do they apply to all transfer scenarios?

With 25 termination causes, what percentage of units have been subject to at least one notice of default or cure demand?

How do you define 'gross revenue' for royalty calculation purposes, and are there any categories of revenue excluded from this calculation?

Can you provide quarterly or annual unit data for 2022 and 2023 to understand when the 3 exits occurred relative to new unit openings?

The territory is protected but not exclusive—what specific protections exist against franchisor-opened or franchisee-encroachment situations?

Given the 30-year potential term, what renewal terms have been offered to franchisees, and have any franchisees declined renewal?