iCode

The monthly technology fee of $500 is above the typical range ($122-$474) for childcare franchises. What specific technology systems and services are included in this fee, and how is it justified relative to competitor offerings?

Your termination rate of 3.9% is nearly 5 times higher than the typical range (0.0-0.83%). Can you provide details on why units were terminated in 2024 and what specific defaults triggered these actions?

The franchise agreement allows termination with only 10 days' cure for payment failures. How many franchisees have received payment default notices, and what support does the franchisor provide to struggling units before initiating termination?

Your 3-year turnover rate of 19.4% significantly exceeds the typical range. Are you aware of common reasons franchisees exit, and what retention programs has the franchisor implemented to address this?

The system grew from 31 to 51 units in 3 years (18.05% CAGR), yet financial performance scored only 40/100. Can you provide Item 19 financial performance data or comparable earnings information from existing franchisees?

One litigation case was initiated against the franchisor. What were the nature and outcome of this case, and has it been resolved?

The mandatory binding arbitration clause waives jury trial and class action rights. Under what circumstances would a franchisee pursue arbitration, and what are typical costs and timelines?

The renewal conditions require achieving 7 compliance standards before renewal is available. What percentage of franchisees fail to meet renewal conditions, and has the franchisor denied renewal to any units?

Your transfer rate of 7.8% is above typical range. What is the franchisor's approval process for unit transfers, and are there restrictions on who can acquire existing franchises?

The personal guaranty has unlimited scope covering all amounts owed by the franchisee. What types of obligations beyond standard royalties and fees could trigger guaranty enforcement?

The agreement includes extensive supplier restrictions across 6 categories. Can you provide a complete list of approved vendors and explain how prices compare to market alternatives?

Of the 10 units that exited in 2022, how many were related to COVID-19 impacts versus operational or business reasons?

The non-compete is 2 years and 25 miles. How is this enforced, and have there been disputes with franchisees opening competing childcare centers after exit?

What support does iCode provide during the initial ramp-up period, and what are realistic timelines for a new unit to reach operational profitability?

System Health scores 80/100 (above typical range), yet Financial Performance scores 40/100. What explains this disconnect between system strength and financial results?

The agreement allows franchisor-initiated closure under 'material and uncurable' defaults. What specific defaults fall into this category, and how has this been applied historically?

What is the average lifecycle of a franchisee in the system, and how many original franchisees from the first year are still operating?

Your Investment Costs score of 53/100 is below typical range. Beyond franchise fee and technology fees, what are all anticipated startup costs including build-out, equipment, and working capital?

The Risk Factors score of 68/100 falls below typical range. What specific risks does the franchisor identify, and how do they compare to competitors in the childcare education space?

What financial benchmarks should a prospective franchisee expect for revenue, gross margin, and operating profit in years 1, 3, and 5 of operation?