Maaco

What specific reasons does Maaco cite for the 5.2% annual termination rate, and how does this compare to your expectations for franchisee viability?

Can you provide details on the 8 cases initiated against Maaco in the past 3 years, including the nature of disputes and outcomes to date?

Given the system declined from 398 to 363 units over 3 years, what is management's strategy to stabilize or grow the franchisee base?

The technology fee of $973 monthly is nearly double the typical automotive franchise rate—what specific services and tools does this cover?

Why does the renewal term extend to 15 years when the typical range for automotive franchises is 5-10 years, and what are the implications for long-term commitment?

Can you clarify whether the 'protected but non-exclusive' territory designation means other Maaco franchises could operate nearby, and what specific encroachment protections are in place?

What drove the spike in terminations to 28 units in 2023, and has management implemented changes to prevent similar peaks?

The royalty rate of 8.0% is above typical ranges—how does this compare to competitors, and is there any flexibility in negotiating this rate?

Can you explain the 3 pending litigation cases and their potential impact on franchise operations or fees?

Why is the transfer fee set at $3,000, which is significantly lower than the typical range of $4,500-$13,750, and are there restrictions on who can purchase a transferred unit?

With a termination rate of 5.2%, what are the primary performance metrics Maaco uses to justify unit terminations?

What do Item 19 financial disclosures show regarding the range of unit profitability, and how many units operate at a loss?

How many of the 2 franchisor-initiated lawsuits involved franchisee disputes versus other parties, and what were the outcomes?

Does the personal guarantee clause cover spouse assets if the franchisee is married, and are there any carve-outs or limitations?

Given the 3-year CAGR of -3.0%, what initiatives are in place to attract new franchisees or support existing ones to improve retention?

Can you provide a breakdown of the 19 units closed in 2024 by reason (sales performance, owner decision, franchisor termination)?

How is the $973 monthly technology fee structured—is it fixed, or does it scale with unit volume or sales?