Moxie Salon & Beauty Bar

What is the status and nature of the 1 pending litigation case, and what claims is the franchisor pursuing against the defendant?

Can you provide details on the 1 franchisee termination that occurred in 2024? What were the specific defaults, and was this termination related to the pending litigation?

Your termination rate of 4.0% is more than double the typical range for salons and beauty franchises. How do you define and measure terminations, and are there circumstances under which the termination rate is expected to decrease?

The technology fee of $450 per month exceeds the typical range. What specific services and technology platforms are included in this fee, and how is it benchmarked against industry standards?

Can you explain the 25 identified termination causes in the franchise agreement? Are franchisees provided with opportunities to cure defaults before termination, or are all 25 causes non-curable?

What prompted the franchisor to file the lawsuit as plaintiff, and is this case related to franchise performance, IP infringement, non-compete violations, or another matter?

The franchise agreement allows for a 40-year total potential term (10 initial + 30 in renewals). How many franchisees have successfully renewed beyond the initial term, and what percentage of renewal applications are approved?

What are the 9 renewal conditions required for franchisees to renew their agreements, and how strict is enforcement of these conditions based on historical renewal data?

Can you provide context on the franchisee who ceased operations (non-closure/non-termination) in 2024? Why was this classified separately from closures and terminations?

The franchise fee of $39,000 is below the typical range, but the technology fee and overall ongoing costs exceed benchmarks. What is the total startup cost and ongoing monthly expense for a typical franchisee?

How many of the 25 current units are Company-owned versus franchisee-owned, and what is the financial performance difference, if any, between these unit types?

Given the mandatory exclusivity of required supplier purchases from 5 categories, what are these categories, and what percentage of the franchisee's operating costs do these exclusive purchases represent?

Are personal guarantees from spouses legally enforceable in your franchise agreements, and have you ever pursued collection against both the franchisee and their spouse in litigation?

What support and training resources are provided to new franchisees, and are there differences in success rates between franchisees who participate in extended training versus those with salon/beauty industry experience?

The system grew 25% in one year (from 20 to 25 units). Is this growth rate sustainable, and what is your forecast for unit growth over the next 3 years?

Can you provide the Item 19 financial performance data broken down by unit age (Year 1, Year 2-5, Year 5+) to show whether units improve in profitability over time?

Are there geographic clusters where terminations or closures have occurred, and if so, what factors contributed to underperformance in those markets?

How is the $10,000 renewal fee calculated, and can franchisees negotiate this fee or other renewal terms, or is it fixed?

What remedies were required in the litigation case initiated by the franchisor, and have those issues been resolved to prevent similar disputes with other franchisees?

Do you offer any alternative dispute resolution (mediation/arbitration) before pursuing litigation, or is litigation the primary enforcement mechanism for contract breaches?