What are the specific details and outcomes of the 10 litigation cases filed against the franchisor in the past 3 years, and what do they allege?
#1
Of the 4 pending litigation cases, what is the nature of each claim and what is the estimated timeline for resolution?
#2
Why is the technology fee of $108 monthly significantly lower than the typical range of $156.5-$877.75 for sports and recreation franchises, and is this subject to increase?
#3
Can you explain why the transfer fee of $1,500 is substantially lower than the typical industry range of $8,937.5-$18,437.5, and whether this fee structure may change?
#4
The system currently has only 3 units after being operational for approximately 1 year—what is the franchisee acquisition strategy and projected unit growth?
#5
What specific circumstances led to litigation being initiated by the franchisor against 2 parties, and were these resolved or are they ongoing?
#6
Given the 9 renewal conditions documented, what are each of these conditions and how often do franchisees fail to meet them?
#7
What financial performance data can you provide about the 3 current operating units, including revenue ranges and profitability?
#8
The non-compete clause restricts business activity for 2 years following termination—does this apply to a specific mile radius or the entire protected territory?
#9
What is the anticipated timeline and approval process for renewal at the end of the initial 10-year term?
#10
Can you provide details on whether the 18 non-curable defaults documented in the termination clause have been triggered by any existing franchisees?
#11
What specific products, services, or equipment must be purchased exclusively from franchisor-designated sole source suppliers?
#12
How does the franchisor support franchisees during the required 12-month advance notice period before renewal, and what happens if a franchisee does not provide notice?
#13
Given the low technology fee compared to industry norms, what specific technology and support systems are included in this fee?
#14
What percentage of the 3 current units have completed their first 12 months of operation, and what are their satisfaction levels?
#15
Are there any regulatory investigations, complaints filed with the FTC, or state franchise regulators that are not reflected in the litigation case count?
#16
What is the personal guarantee and spouse guarantee requirement if a franchisee's business fails, and has this been enforced in any cases?
#17
Can you provide contact information for current and former franchisees (if any exist beyond the 3 current units) for reference checks?
#18