Health Mart

What specific factors are driving the escalating closure and termination rates, which increased 54% from 2023 to 2025?

Can you provide details on the 3 pending litigation cases, including their nature, parties involved, and estimated timeline for resolution?

Given the perpetual contract structure with no defined renewal periods, under what specific circumstances does the franchisor exercise termination rights?

Why is the franchise fee $0 when the category average is $39,500-$54,625, and does this indicate a different business model or market positioning?

The termination rate of 10.5% is 5 times higher than the category average of 0-1.95%. Are there documented performance thresholds that trigger termination?

What support and training resources are provided given that the Support & Training score (67) is below the category range of 81-96.25?

How does the system address territory conflicts or encroachment, given the territory is non-exclusive with no encroachment protection?

Can you explain the discrepancy between reported closures and other exits? In 2024, you reported 432 closures, 141 other ceased operations, and 63 transfers—how are these categories defined and differentiated?

What recourse do franchisees have regarding the requirement to indemnify the franchisor from all losses without limitation, especially given the high termination rate?

Are there performance metrics or sales thresholds that franchisees must maintain to remain in good standing, given the high attrition rate?

The non-compete period is 0 years. Can former franchisees immediately compete with Health Mart or other franchisees in the same market?

What is included in the $50 monthly technology fee, and are there additional mandatory technology or operational costs not listed in the fee breakdown?

Given that 150-476 units per year are listed as 'ceased other,' what specific reasons are these units closed, and does the franchisor actively monitor or support at-risk locations?

Can you provide audited financial statements or Item 19 disclosure showing unit-level profitability for comparable franchise locations?

What are the spouse indemnification requirements, and how are spouses expected to guarantee obligations if they are not franchisee owners?

Has the franchisor implemented any changes to support franchisees in response to the declining unit count and rising termination rates?

What is the typical cost of acquisition and annual operating expenses for a Health Mart franchise, given the $0 upfront franchise fee?

Are the 3 pending litigation cases related to franchisee disputes, regulatory matters, or other issues, and how might they affect franchise operations or fees?