M14Hoops

The franchise shows exceptional 3-year CAGR of 74.7%, significantly above the typical range of 0.0-23.1%. What is driving this rapid unit growth, and are all new units owned or franchised?

Support & Training scores 63, below the typical range of 79.0-93.0 for this franchise type. What specific training and ongoing support is provided to franchisees, and how does this compare to competitors in the Sports & Recreation category?

Territory scores 50, below the typical range of 75.0-85.0. While territory is protected, it is not exclusive and offers no explicit encroachment protection. Under what circumstances could the franchisor open a competing M14Hoops location within your protected territory?

The franchise agreement provides only 10 days to cure payment defaults and 30 days for development/opening defaults, with 18 non-curable default categories. Can you provide examples of what constitutes non-curable defaults and whether partial remediation is possible?

Post-term non-compete restrictions apply for 24 months within 25 miles of your territory and 10 miles of any other M14Hoops location. How is this restriction enforced, and are there geographic areas in your territory where you could operate a competing basketball business?

Item 19 financial performance is available, but specific gross sales figures are not provided in this analysis. Can you request the Item 19 document to review actual unit financial performance, average revenues, and profitability metrics?

Technology fee is $42 monthly, which is below the typical range of $156.5-$877.75 for this franchise type. Is this fee fixed or variable, does it cover specific software/platforms, and could it increase during your franchise term?

Contract Terms score 55, below the typical range of 60.0-65.0. What are the primary terms that differ from industry standards, and what flexibility exists for negotiating key clauses such as renewal conditions, termination rights, or territory protection?

Renewal requires a $10,000 renewal fee and mandatory remodeling to current franchisor standards. What are the estimated costs and timeline for mandatory remodeling, and are franchisees required to maintain specific facility conditions throughout their term to avoid non-renewal?

The total potential term is 10 years, below the typical range of 20.0 years. Why does the franchise offer only one 10-year renewal option instead of multiple shorter options or a longer initial term, and what triggers non-renewal decisions?

Minimum performance standards for gross sales must be met to retain territorial rights. What are the specific revenue thresholds by location size, how are they measured and adjusted annually, and what is the remediation process if minimums are not met?

The franchise has zero documented exits since 2021. Can you provide details on any franchisees who chose not to renew, transferred their franchise, or exited for any reason, even if not officially recorded?

Personal guarantees are required from all owners and their spouses on a joint and several basis. Does the franchisor require spouse guarantees regardless of spouse involvement in the business, and are there circumstances under which this requirement can be waived?

Late payment interest is charged at 18% per annum or the legal maximum. How frequently do late payments occur across the franchisee base, and what is the typical timeline for payment default before termination proceedings begin?

Indemnification obligations require franchisees to defend the franchisor from all losses. Are there caps on indemnification exposure, and are franchisees required to carry specific insurance to cover franchisor indemnification obligations?

What is the status of the franchisor's operations, ownership structure, and financial stability? Has the franchisor ever undergone litigation, bankruptcy, or regulatory action that might not appear in this 3-year litigation window?

Given the franchise's early stage (only 16 units currently) and rapid growth, what is the franchisor's expansion timeline, and are there territorial caps or saturation limits on how many units can be opened in a region?

Are there any verbal agreements, supplemental documents, or informal understandings with the franchisor that differ from the written franchise agreement, particularly regarding territory protection, support, or renewal conditions?