What was the specific nature of the pending litigation case against the franchisor, and what is the expected timeline for resolution?
#1
Can you provide detailed information about the 12 unit closures in 2023? Were these closures due to specific operational issues, market conditions, or support gaps?
#2
What changes did the franchisor implement between 2023 and 2024 that may have stabilized unit closures and contributed to recent net growth?
#3
The non-compete clause restricts franchisees to a 50-mile radius for 2 years post-exit, which is significantly larger than typical. How is this enforced, and are there any modifications or waivers available?
#4
Renewal requires meeting 10 specified conditions. Can you provide the complete list of these conditions and clarify which are most frequently cited as reasons for renewal denial?
#5
What is the actual cost to upgrade all hardware and software during renewal, and are there financing options available to franchisees?
#6
The franchise agreement requires minimum gross revenues of $75,000 by the first anniversary. What percentage of franchisees meet this target, and what support is provided to franchisees falling short?
#7
Can you clarify the dispute resolution process and explain why binding arbitration is mandated in Montreal, Quebec, regardless of franchisee location?
#8
What personal guarantee liability exists beyond the franchise agreement itself, and does the franchisor enforce spousal guarantees?
#9
The transfer rate of 7.1% is above typical range. What are the primary reasons franchisees transfer ownership, and what approval process and fees apply?
#10
Are there any restrictions on the types of locations or customer demographics that franchisees can serve, and how does this affect territorial value?
#11
What specific training and ongoing support are provided, and how does the Support & Training score of 78 (below typical range) affect franchisee success rates?
#12
Can you provide examples of defaults classified as 'curable' versus 'incurable' to understand termination risk for common operational issues?
#13
What are the specific 'performance standards' franchisees must maintain after the first anniversary, and how are these measured?
#14
Are there any caps on royalty obligations during lower-revenue periods, or do royalties apply regardless of profitability?
#15
What late fees apply to royalty payments reported more than 2 days late, and how frequently are these assessed across the system?
#16
Can you provide the renewal fee of $5,000 is per territory or per franchise, and whether this is in addition to other renewal costs?
#17
How many franchisees are currently in their renewal period, and what is the actual renewal rate (percentage renewing versus not renewing)?
#18
What encroachment protection exists, and has the franchisor honored exclusivity commitments in territories where new units are being added?
#19
Are there any existing disputes or complaints from franchisees regarding territory, support quality, or fee structures that should be disclosed?
#20