La Quinta Inn & Suites

What are the specific details and outcomes of the 4 litigation cases where La Quinta initiated action against franchisees or other parties? What was the timeframe and nature of these cases?

Regarding the 8 pending litigation cases, what are the key issues involved (e.g., franchise agreement disputes, payment defaults, operational non-compliance) and what is the expected timeline for resolution?

The transfer fee of $55,000 is significantly higher than typical for hospitality franchises. Is this fee always charged for ownership changes, and are there circumstances where it may be waived or reduced?

Can you provide a detailed breakdown of the 29 unit closures in 2024? How many were due to franchisor termination versus voluntary closure, and what were the primary reasons cited?

The franchise agreement states no renewal options exist at the end of the 20-year initial term. What options are available to franchisees whose agreements expire? Can previous franchisees reapply?

Given the royalty rate of 6.0% is above the typical 5.0-5.5% range, how does La Quinta's total ongoing fee structure (royalty plus ad fund plus technology fee) compare to competitors, and what services justify each component?

What specific support, training, and ongoing services are franchisees receiving that result in the above-average Support & Training score of 83/100? Can you provide examples?

The system declined from 901 units 3 years ago to 884 units currently. Can management provide a strategic explanation for this contraction and a forward-looking unit growth or stabilization plan?

How many of the 242 unit transfers in 2022 were due to franchisor approval denials, and what criteria does La Quinta use to evaluate transfer requests?

The franchise agreement requires 10-day cure periods for payment defaults. How frequently are franchisees given cure notices, and what percentage ultimately cure versus face termination?

Personal guarantees are required from owners. In the event of franchise termination, what are the specific consequences for personal guarantees, and can they be released before the full 20-year term expires?

Can you provide a list of the 8 pending litigation cases by category (franchisor-initiated vs. against franchisor) and the approximate amounts in dispute or damages claimed?

The territory is protected but not exclusive. How does La Quinta define territory boundaries, and have there been disputes regarding encroachment or overlapping unit performance?

What is the current status of the 6 cases where La Quinta was named as defendant? What are the primary allegations, and have any resulted in judgments or settlements?

The transfer fee equals the initial franchise fee at $55,000. Are there any scenarios where this fee could be negotiated, waived for family transfers, or applied toward future renewal fees?

Item 19 financial performance data is disclosed. Can you provide median and average unit volumes for La Quinta franchises, broken down by location type (airport, highway, urban) and age of unit?

What specific conditions, if any, trigger non-renewal by the franchisor at the end of the 20-year term, and how much advance notice is provided?

Have there been any changes to the royalty rate, ad fund contribution, or technology fee structure in the past 5 years, and are adjustments planned for the future?