Can you provide details on the 2 pending litigation cases, including the nature of the disputes, parties involved, and expected resolution timeline?
#1
The technology fee of $499 monthly is above the typical range for this franchise type—what specific technology services and support does this cover?
#2
With only 1 unit currently operating and no unit growth in the past 3 years, what is the franchisor's growth strategy and timeline for expanding the franchise system?
#3
Why is the franchise fee of $59,500 priced above the typical range of $40,000-$55,000 for driving school franchises?
#4
The agreement lists 27 termination causes compared to the typical 15-22—can you provide a breakdown of which violations are curable versus non-curable?
#5
Given the $591,547 average gross sales reported in Item 19, what is the typical net profit margin after accounting for royalties, fees, and operating costs?
#6
The ad fund rate of 3.0% is above the typical 1.0-2.0% range—how is this fund used and what accountability exists for its spending?
#7
Can you clarify the breakdown of the 2 pending litigation cases: Are they initiated by the franchisor against franchisees, or against the franchisor?
#8
What specific conditions must be met to renew the franchise for the second 10-year term, and are there any performance benchmarks required?
#9
The non-compete clause covers 2 years and 25 miles—does this apply equally after termination, non-renewal, and voluntary transfers?
#10
Are there any minimum royalty payments required regardless of revenue, and what are the consequences of late payment beyond the stated 1.5% monthly interest?
#11
With territory protection in place but not exclusive, what protections exist against the franchisor opening competing locations nearby?
#12
The renewal fee of $11,900 equals 20% of the then-current franchise fee—how is the future franchise fee determined, and could this increase significantly?
#13
Why has the system remained at exactly 1 unit for 3 consecutive years? Are there expansion efforts underway or has recruitment stalled?
#14
All members or shareholders are required to provide personal guarantees—what specific liabilities do guarantors assume beyond the initial investment?
#15
Can you provide examples of the 8 curable defaults and their typical cure periods, and what happens if a franchisee fails to cure within the specified timeframe?
#16
How many franchisees have renewed their agreements, and what percentage of renewals are completed versus not completed?
#17
Is the $591,547 gross sales figure based on 1 unit or historically averaged across multiple units, and does it include seasonal variations?
#18
What happens to the 25-mile non-compete radius if the franchisee relocates or the territory boundaries change during the contract term?
#19