The franchise fee of $24,900 is significantly below the category average of $39,500-$55,000. What additional costs or requirements should franchisees anticipate beyond the disclosed fee to launch a unit?
#1
Three litigation cases have been filed against the system, exceeding the typical range. What were the nature, dates, and resolutions of these cases, and were any franchisor-initiated or initiated against the franchisor?
#2
The termination rate of 2.3% suggests franchisor-initiated exits, which is above the typical range of 0%. What specific breaches or performance failures triggered terminations in 2024, and were cure periods offered?
#3
Transfer activity has increased significantly, with 23 transfers in 2023 and 17 in 2024. What percentage of these transfers involved sales to external buyers versus franchisor buybacks, and what are typical transfer approval timelines?
#4
The agreement contains 25 non-curable defaults compared to 6 curable defaults. Can you provide specific examples of non-curable defaults and clarify whether a single breach in any of these categories results in immediate termination?
#5
The 10-day cure period for law violations appears very short. What types of law violations fall under this 10-day cure provision, and how is compliance verified or communicated to franchisees?
#6
Personal guarantees are required from all owners and spouses. If the franchise fails, what personal assets and liability exposure should franchisees anticipate beyond the franchise investment itself?
#7
A minimum annual player registration revenue of $60,000 is required. How is this calculated, what happens if a franchisee falls short, and what recourse exists if this target becomes unachievable due to market conditions?
#8
Late payment penalties include 5% late charges plus 18% annual interest. How frequently do franchisees incur late payments, and does the franchisor offer payment plans or financing options for seasonal cash flow challenges?
#9
The technology fee of $3 monthly is unusually low compared to the category norm of $156.50-$877.75. What technology services and platform access does this fee cover, and are there additional technology or software upgrade costs not included in this fee?
#10
Eight conditions must be met for renewal, including hardware and software upgrades. What is the estimated cost of completing these upgrades, and can franchisees negotiate or defer upgrades if they become cost-prohibitive?
#11
The non-compete clause specifies 2 years and 10 miles. Can you provide examples of enforcement actions taken, and does this restriction apply equally to franchisees who do not renew versus those terminated?
#12
Six units closed and 6 were terminated in 2024. Were any of these related to the financial performance metrics disclosed, and what percentage of the franchise system has been affected by closures and terminations since inception?
#13
Support & Training scores below the typical range at 74 out of 100. What specific training gaps or support shortcomings contributed to this below-average score, and what improvements are planned?
#14
System Health scores above the typical range at 79. Can you explain which operational metrics drove this above-average score and whether it reflects unit profitability, franchisee satisfaction, or other factors?
#15
The franchise reports 264 current units with 19 net growth in the past year. How many prospective franchisees were denied in the past 12 months, and what criteria result in applicant rejection?
#16
Median gross sales are $412,043. What percentage of franchisees fall below the median, and what are the lowest and highest reported sales figures for active units?
#17
Item 19 financial performance data is available. Are net profit figures, operating expenses, and payroll costs disclosed, or only gross revenue?
#18