Hi-5 ABA

What are the specific reasons the franchisor is listed as defendant in the pending litigation case, and what is the expected timeline for resolution?

Given the 16.7% exit rate in the past year—more than double the category average—what support or operational challenges are franchisees citing when exiting?

Why is the initial contract term only 5 years when the category standard is 10 years, and how does this shorter term affect franchisee investment recovery plans?

The technology fee of $93/month is significantly below category average. What specific technology and services are included, and are there additional software or platform costs not reflected in this fee?

The royalty rate of 7% exceeds the typical 5-6% range. How does this rate compare to competitor franchises in the home-based ABA services sector?

Can you provide details on the pending litigation case involving the franchisor as defendant, including the nature of the claim and estimated resolution date?

How many of the 5 closures in 2024 were due to franchisee profitability issues versus external factors like market conditions or client acquisition challenges?

The transfer fee of $6,000 is substantially lower than category norms of $10,000+. What protections does the franchisor have regarding franchisee transfers, and has this low fee impacted transfer frequency?

What is included in the Item 19 financial performance disclosure, and are you willing to provide average unit volumes, profit margins, and payback period data?

How does the franchisor support franchisees in the critical first year, given that many exits appear to occur within 12-24 months of opening?

The territory is non-exclusive with no encroachment protection. How many franchised units currently operate within typical service radius of existing units, and what is the franchisor's policy on new unit placement?

Can you explain the 5-renewal option structure totaling 30 years? Is the renewal automatic, and what fees or renegotiations occur at each 5-year renewal?

The 2-year non-compete has no mileage radius specified. How is geographic scope determined, and what are the practical enforcement challenges you've encountered?

Given the elevated closure rate, what financial thresholds or performance metrics trigger franchisor support interventions before a unit fails?

Are there seasonal fluctuations in ABA service demand that franchisees should anticipate, particularly in summer months when school services reduce?

What percentage of the current 30 units are new franchises opened in the past 12 months versus legacy units, and what is the survival rate for cohorts by opening year?

The personal guarantee requirement covers all shareholders and indemnifies the franchisor against multiple liability categories. What specific scenarios have triggered indemnification claims against franchisees?

How is the $93 technology fee allocated—what portion covers billing software, compliance documentation, client management systems, and franchisor support platforms?