Patrice & Associates

The franchise fee of $65,000 is above the typical range for this category—what specific training, technology, or support justifies this premium pricing?

Can you provide detailed information about the 3 litigation cases against the franchisor, including the nature of disputes, settlement outcomes, and whether any relate to franchisee disputes or system-wide issues?

What is the status and expected resolution timeline for the 1 pending litigation case?

The termination rate of 11.1% is significantly above the typical range of 0-3.83%—what are the primary reasons franchisees are being terminated, and how do you define termination vs. non-renewal?

Median gross sales of $2,800 and average gross sales of $18,976 are substantially below typical ranges—are these figures annualized, and what percentage of units report zero or near-zero sales?

Can you explain the variation between the median ($2,800) and average ($18,976) gross sales—are there significant disparities between unit performance, and what factors drive top-performing units?

Why does the bottom quartile show $0 in sales—are these units still operational, newly launched, or inactive pending closure?

Over the past 3 years, closures have ranged from 22-33 units per year while the system has grown only 1 net unit—what is the recruitment and acquisition plan to offset this high exit rate?

Given the 11.1% termination rate, what specific performance metrics or compliance issues most commonly lead to franchisee termination?

Can you provide a breakdown of the 27 units that closed in 2024—how many were voluntary closures vs. franchisor-initiated terminations, and what were the stated reasons?

The 2-year non-compete restriction applies to the franchisee's territory and any territory assigned to another franchisee—how broadly does the franchisor interpret 'assigned territory,' and have disputes arisen over this language?

What renewal fees are charged when exercising renewal options (if not already provided), and are there other material cost increases upon renewal?

Since territory is protected but not exclusive, what is the franchisor's policy on adding new units in or adjacent to an existing franchisee's territory?

Can you clarify the dispute resolution clause—what is the average cost and duration of arbitration cases, and are there any examples from the 3 litigation cases that went to arbitration?

The personal guarantee and spousal guarantee requirements are mentioned in legal terms—are these mandatory for all franchisees, and are there any circumstances under which they can be waived or modified?

What specific support, training, and technology are included in the initial onboarding and ongoing royalty fees to justify the 10% royalty rate?

How many franchisees from 3 years ago are still operating today, and what is the cumulative survival rate for units opened 3, 5, and 10 years ago?

Are there geographic patterns to closures or terminations—do certain regions or markets show higher failure rates than others?

What financial benchmarks or sales thresholds must units meet to avoid termination, and how are underperforming units supported or remedied before termination?

Can you provide Item 19 financial performance data with greater detail, including number of units reporting, performance by unit age, and explanation for units with zero or minimal sales?