Monster Tree Service

The system has declined by 38 units (17.8%) in the past year alone. Can you provide a detailed explanation for the specific reasons behind the 48 closures in 2023 and 48 closures in 2024?

In 2023, 33 units were franchisor-terminated while 48 units closed. Were these terminations due to performance issues, non-compliance, or other factors? What percentage involved franchisee-initiated exits versus franchisor-initiated actions?

What does 'ceased other' mean for the 37 units listed in that category in 2024? This represents a significant change from prior years' closure patterns.

The franchisor has been defendant in 2 litigation cases (above typical range). What were the nature of these cases, and were they related to franchisee disputes, terminations, or other matters?

System Health scores only 1/100, which is substantially below the typical range of 47.25-68.5. What specific operational, financial, or management issues drive this extremely low score?

The franchise agreement contains 24 separate grounds for immediate termination (above typical range of 13.25-20.0). Can you explain which of these are most commonly cited in actual terminations, and what proportion of terminated franchisees challenged these decisions?

The renewal conditions count of 12 is above the typical range of 6.0-8.0. What are these 12 conditions, and how frequently do franchisees fail to meet them at renewal?

Median unit sales of $1,210,482 exceed typical ranges, but the system is shrinking. Are the remaining 176 units performing better than those that exited, or does the survivor bias not account for underlying system problems?

Given the 22.4% 1-year turnover rate and 10.7% compound annual decline, what is the franchisor's growth strategy to stabilize and rebuild the system?

The franchise requires approval of suppliers in 8 categories with minimum pricing controls. Have recent closures or terminations been related to disputes over supplier approval or pricing requirements?

Initial term is 10 years with 2 renewal options of 10 years each (30-year total potential), which exceeds the typical 20-year range. What is the typical franchisee experience with renewal negotiations and approval?

Personal guarantees are required from all owners with 5% or greater interest, and spouses must acknowledge. How many franchisees have faced personal liability claims from the franchisor beyond the franchise agreement itself?

Transfer fee is $10,000 and renewal fee is $5,000. How many transfers occurred in the past 3 years (only 17 total transfers recorded), and why is this rate so low relative to closures?

The operational control score is 4/5 (franchisor-favorable), with restrictions in 8 supplier categories. What recourse do franchisees have if they believe approved vendors are charging non-competitive prices?

No non-renewal rate is recorded (0.0%). Does this mean all franchisees whose initial term expired have either renewed or been terminated/closed, or is data unavailable for non-renewals?

The liability and indemnification clause includes personal guarantees and spouse acknowledgment. Have any franchisees successfully challenged these requirements, or are they considered standard in franchise disputes?

What support and training score of 95/100 (above typical range) is based on, given the high system turnover and low System Health score? How does the quality of franchisor support correlate with unit survival rates?

Can you provide Item 19 financial performance disclosure detail, including: number of units reporting, breakdown by territory/unit age, and confidence metrics around median vs. average sales figures?

Of the 2 litigation cases, how many involved the franchisor defending against franchisee claims versus third-party claims? Were any related to franchisor practices regarding termination or operational control?

Investment Costs score of 33/100 falls below the typical range of 75.0. What are the post-franchise-fee startup costs that franchisees typically encounter, and are there hidden costs beyond the disclosed fees?