What specific disputes are reflected in the 6 total litigation cases, and how were the 3 cases initiated by the franchisor resolved?
#1
Can you provide details on the 1 pending litigation case, including the nature of the dispute and expected timeline for resolution?
#2
The transfer rate of 8.4% is notably higher than typical for this category. What are the primary reasons franchisees are transferring their units?
#3
Why has the transfer rate increased 23.5% from 2022 (17 units) to 2024 (21 units) while closures remained relatively stable?
#4
Sales for median units ($457,502) and top quartile units ($700,000) are both below category norms. What is driving lower-than-average unit economics?
#5
With 12 units closed in 2024 (compared to 9 in prior years), is this trend continuing or stabilizing?
#6
The franchise agreement specifies only 5 days to cure payment defaults. How many defaults have resulted in termination under this clause in the past 3 years?
#7
Can you explain the 16 non-curable defaults that allow immediate termination without cure period? How frequently are these invoked?
#8
What is your experience with the mandatory binding arbitration requirement in Los Angeles, California? What are typical costs and timelines for disputes?
#9
The personal guarantee requirement extends to the franchisee's spouse. Are spouses required to sign this guarantee, and what are the implications if the marriage dissolves?
#10
The initial term of 15 years is significantly longer than typical. What protection do franchisees have if the business is not profitable during this extended period?
#11
With a total potential term of 35 years (initial 15 + two 10-year renewals), what conditions could the franchisor impose at renewal, and are renewal fees fixed or variable?
#12
The renewal fee is $10,000. Are there any other fees or system upgrades required at renewal that could increase total renewal costs?
#13
Territory is non-exclusive. Can the franchisor open competing Marble Slab Creamery locations near my unit, and if so, what is the notice period?
#14
Despite having encroachment protection listed, how is this protection defined and enforced if a new location would impact existing unit sales?
#15
The non-compete clause restricts operation within 2 years and 5 miles post-termination. Are there geographic or time-period variations based on the reason for departure?
#16
Technology fees are $70/month. What technology systems are included, and are there additional technology costs beyond this monthly fee?
#17
Have there been significant changes to technology systems or fees in the past 3-5 years, and what are the plans for technology investments going forward?
#18
With 249 total units, what percentage are company-owned vs. franchisee-operated, and how does company performance compare to franchisee units?
#19
Can you provide a breakdown of the 21 units transferred in 2024—were these voluntary sales, forced sales, or conversions to company ownership?
#20