Mochinut

Of the 8 litigation cases filed over 3 years, what are the primary allegations or dispute categories, and how many have been resolved versus remain pending?

Can you provide specific details on the 2 pending litigation cases, including the nature of disputes and expected resolution timeline?

Why has the voluntary closure rate accelerated dramatically (5 closures in 2022, 15 in 2023, 34 in 2024) while the system has maintained net positive growth?

What exit interviews or feedback have you collected from franchisees who voluntarily closed, and what were the primary reasons cited?

Given the 23.3% 1-year turnover rate, what percentage of these closures were owner/operator-initiated versus market-driven, and what is your target turnover rate?

The ad fund contribution of 1.0% is below category norms of 1.5-3.0%; how is this lower rate sufficient to support system-wide marketing, and do franchisees have concerns about marketing support?

Why is the initial contract term only 5 years compared to the typical 7.75-10.0 years for similar franchises, and does this shorter term impact franchisee investment ROI calculations?

With total potential term of only 10 years versus the typical 15.0-20.0 years, how does this affect long-term franchisee planning and willingness to invest in location improvements?

The franchise has 12 non-curable default causes versus typical ranges of 15.0-20.0; what specific defaults trigger immediate termination without cure period, and how frequently are these enforced?

Can you clarify the 2-year non-compete restriction within 10 miles—does this apply to all competitive food concepts or only mochi-focused establishments, and has this restriction been enforced post-exit?

What does the 'Required restaurant improvements' renewal condition entail, and what costs should franchisees anticipate to maintain compliance beyond the $15,000 renewal fee?

The dispute resolution clause mandates binding arbitration with class action waived; how many disputes have been arbitrated versus settled, and what is the average cost and timeline?

What percentage of the 151 current units are company-owned versus franchised, and how do company-owned unit economics compare to franchised units?

Can you provide 3-year financial data or Item 19 data showing average unit volumes, gross margins, and payback periods to help assess the viability of the closure rate?

Why is the Support & Training score 75 when the category typical is 83.75-99.0, and what specific areas of training or support are considered below standard?

Of the 7 cases initiated against the franchisor, how many involved franchise disputes versus employment, health/safety, or other regulatory claims?

The termination rate is 0% over the past year; has the franchisor deliberately avoided terminating underperforming units, and if so, what performance metrics trigger intervention?

For the $35,000 franchise fee, what is included in initial setup costs, and what are typical total startup costs franchisees should budget beyond the franchise fee?

The transfer fee is $15,000; how frequently do franchisees transfer ownership, and are there franchisor approval conditions that might block transfers to qualified buyers?

Can you explain the 12 non-curable defaults in detail, as this appears to give franchisor significant termination authority with minimal franchisee recourse?