What are the specific details and current status of the 2 pending litigation cases, and how have they affected franchisee recruitment or retention?
#1
The franchisor initiated 1 case in the past 3 years - can you provide details on the nature of this case and its resolution or current status?
#2
With 39.3% unit growth in the past year significantly exceeding the typical 0.0-25.0% range, how sustainable is this growth rate, and what factors are driving it?
#3
Two units closed in 2024 (5.1% exit rate) - can you provide specific reasons for these closures and whether they were related to operational challenges?
#4
Why is the transfer fee of $24,000 substantially higher than the typical $7,500-$17,500 range, and is this fee negotiable?
#5
The initial term is only 5 years, shorter than the typical 7.75-10.0 years - what is the rationale for this shorter term, and does it impact franchisee security?
#6
Can you clarify what the 6 renewal conditions entail, and have any franchisees been denied renewal due to failure to meet these conditions?
#7
Given the 2 pending litigation cases, what is the nature of these disputes, and could they set precedent affecting franchisee operations?
#8
The franchise fee equals the renewal fee at $30,000 - if a franchisee doesn't renew, can they transfer the business to avoid paying this fee?
#9
What support and training resources justify the Support & Training score of 82, and how does this compare to competitor offerings?
#10
Since the system is only 3 years old (0 units in 2022), how are franchisees being recruited, and what is your pipeline for future growth?
#11
With a 2-year / 10-mile non-compete clause, how is this enforced, and have there been any legal disputes over non-compete violations?
#12
Can you provide financial performance data or Item 19 details for existing franchisees to validate the business model?
#13
What specific maintenance and refurbishment requirements are tied to renewal conditions, and what are the estimated costs?
#14
The franchise requires arbitration in Miami, Florida - are there cases where franchisees objected to this venue, and what has been the average cost and timeline of arbitration?
#15
Given that all principals and spouses must provide personal guarantees, what recourse do franchisees have if the franchisor breaches the agreement?
#16
How many of the 39 current units are company-owned versus franchisee-owned, and what are the financial metrics for company-owned units?
#17
The Contract Terms score of 58 falls below typical range - which specific contract terms are more franchisor-favorable than industry standard?
#18