N2 Franchising, Inc. (REAL PRODUCERS)

What specific circumstances led to the 109 unit closures in 2022, which represented a 91% reduction from the prior year's system size?

Can you provide detailed information about the 2 franchisor-initiated litigation cases filed in the past 3 years, including the parties involved and case outcomes or current status?

Why is the royalty rate set at 15.0% when the typical range for business services franchises is 6.0-10.0%, and is this rate negotiable?

Given the 3-year initial term with no renewal options, what happens to franchisees' business interests at the end of the term, and under what conditions would renewal be granted?

The contract includes 21 non-curable defaults allowing immediate termination—can you provide the complete list and specific examples of actions that would trigger termination without opportunity to cure?

How does the binding arbitration requirement at your principal business office location affect franchisees' ability to defend themselves, and what are typical dispute resolution costs?

Are personal guarantees from all business principals required, and does the indemnification clause apply to claims unrelated to franchise operations?

What support and training is provided to franchisees, and how does it compare to industry standards given the below-typical Support & Training score of 68?

Can you explain the significant variance in unit sales performance (top quartile $326,770 vs. bottom quartile $30,360) and what factors contribute to this wide range?

Of the 18 units closed in 2023 and 26 closed in 2024, how many were voluntary closures versus franchisor terminations, and what were the primary reasons cited?

Is the franchise fee of $735 accurately stated, and if so, what is included in this substantially below-market fee compared to typical business services franchises charging $31,125-$50,000?

Does the non-compete clause of 2 years/10 miles apply only within a franchisee's territory, or does it have broader geographic scope?

What is the cross-default provision language, and does a default under other franchisor-affiliated agreements automatically trigger franchise termination?

Are there any conditions under which the franchisor might offer contract renewal beyond the 3-year initial term, and what financial or performance benchmarks would apply?

Given the absence of exclusive territory and no encroachment protection, how does the franchisor prevent direct competition from other N2 franchisees in adjacent areas?

What specific metrics or thresholds would trigger franchisor termination for 'non-curable defaults,' and are there any examples from previous franchisee terminations?

Can the $735 transfer fee be waived or negotiated, and what is the franchisor's transfer approval process and timeline?

The Risk Factors score of 48 is below typical—what specific operational or financial risks should prospective franchisees be aware of based on recent system history?