NextCar

The system health score of 19/100 is significantly below the typical range of 47-71 for automotive franchises. What specific operational or performance issues are driving this low score, and what remediation efforts is the franchisor implementing?

Can you provide detailed information about the 1 litigation case filed against the franchisor? What was the nature of the claim, the outcome, and are there any ongoing disputes?

The termination rate of 3.2% is nearly double the typical automotive franchise range of 0-1.9%. How many of the terminations in 2025 were due to non-payment of fees versus performance-related issues, and what is the franchisor's typical remediation process before termination?

Unit count declined 6.45% in the past year from 31 to 29 units. Beyond the 2 closures and 1 termination recorded in 2025, what caused the third unit departure, and are there any additional units at risk of closure or termination?

The franchise agreement lists 24 termination causes, exceeding the typical range of 13-18. Can you provide a complete list of all 24 causes and clarify which are curable (with the 15/30-day cure periods) versus non-curable immediate termination events?

Your royalty rate of 4.0% is below the typical automotive franchise range of 5.38-7.5%. Is this rate locked in for the initial term and any renewal periods, or does it increase based on system performance or timeline?

The transfer rate of 0.0% in the past year is significantly below the typical 0.6-5.6% range. Does this indicate a franchisor policy that restricts or prohibits transfers, and what are the specific requirements and approval process for a franchisee to transfer their unit?

Item 19 financial performance disclosure is available. What is the average or median gross sales for franchisees, and how many units reported this data? What is the typical profit margin after accounting for royalties, ad fund, and technology fees?

The non-compete clause is 2 years and 20 miles. If a franchisee's unit is terminated due to non-payment or performance issues, are they allowed to open a competing automotive service business within that radius during the restriction period?

What specific support and training does the franchisor provide to help franchisees maintain profitability and avoid the above-typical termination and exit rates observed in the past year?

The transfer fee of 4,000 is below the typical range of 4,500-13,750. Are there additional costs associated with transfers such as legal review, approval, or training fees for the new franchisee?

Can you provide examples of the 24 non-curable defaults that allow immediate termination without a cure period? What actions or omissions would trigger immediate termination?

The personal guarantee and spouse guarantee requirements are mandatory. If the franchise is terminated, what recourse does the franchisor have against the personal guarantors, and can they pursue legal action beyond the franchise agreement?

Given the 19/100 system health score, are there pending system changes, reformatted business model improvements, or technology upgrades the franchisor is implementing to stabilize and grow the network?

Is the 1-year unit decline reflective of broader market conditions in the automotive service industry, or is this decline specific to NextCar franchisees? How does this compare to the franchisor's projections for system growth?

The franchise has exclusive territory with encroachment protection. If the franchisor violates the exclusive territory grant by opening a competing location or allowing a competing franchisee to operate nearby, what remedies are available to the franchisee?

What is the initial franchise term length and number of renewal options available? Given the high termination rate, what happens to a franchisee's investment and goodwill if the franchisor chooses not to renew the agreement?

Can you provide contact information for at least 10 current and 5 former franchisees, including those who exited voluntarily and those who were terminated, so I can discuss their experiences directly?