Kwik Kar

What triggered the closure of 12 units in 2023? Were these closures franchisor-initiated, owner-initiated, or due to external market conditions?

The system contracted sharply from 36 units (3 years ago) to 24 (1 year ago) but is now recovering to 26 units. What specific factors caused this decline, and what strategies are being implemented to drive growth?

How is the 0.5% ad fund rate being utilized? Is this significantly lower than competitor franchises, and does the franchisor supplement this with corporate marketing investments?

Can you provide clarity on why the non-compete period is 3 years and 25 miles when this exceeds the typical 1-2 year range for automotive franchises? What is the business justification for this extended restriction?

The franchise requires 15-year initial and renewal terms. How often are franchisees choosing not to renew, and what are the stated reasons for non-renewal?

What are the 11 non-curable defaults specified in the termination clause, and have any franchisees been terminated for these violations?

Can you clarify the dispute resolution requirement for binding arbitration in Denver, Colorado? What is the typical cost of arbitration for franchise disputes in your system?

The operational control clause requires 90% purchasing from approved vendors across 8 categories. What are the average markup rates on these approved products, and how do prices compare to independent market options?

Personal guarantees are required from all owners with 10% or more ownership, including spouses. Can you explain the circumstances under which spouses have been held personally liable?

Why does the Territory score rank at 35/100 (well below the 60-97.5 typical range)? Is this due to lack of exclusive territory, lack of encroachment protection, or other factors?

What percentage of current franchisees are on their original 15-year term versus renewal terms? How many franchisees have renewed versus exited?

The technology fee is $193 monthly. What specific technology systems and support does this include, and are there any additional technology costs not included in this fee?

Can you provide a breakdown of the 1,013,875 average gross sales figure by franchise age, location type, and market conditions? Are there material differences between units?

Given zero reported transfers in the past year, how difficult is it for franchisees to sell their businesses, and are there franchisor approval requirements that may limit transfer opportunities?

The non-renewal rate is reported as 0.0%. Does this mean no franchisees have chosen not to renew, or is this data incomplete for recent franchise expirations?

How many franchisees have invoked the 7-10 day cure period for curable defaults? What types of breaches are most commonly cured versus leading to termination?

The Risk Factors score of 80 exceeds the typical range (40.0-76.0). What specific risk factors contributed to this elevated score?

Are there any restrictions on franchisees operating competing automotive service businesses in non-compete areas after the 3-year restriction expires?

The franchise agreement provides renewal options for either a 15-year term or dual 5-year terms with auto-extension. What are the key differences in terms, fees, or conditions between these renewal structures?