Payless Car Rental System

Of the 7 pending litigation cases, what are the primary allegations or claims, and are any class action lawsuits involved?

The system lost 11 units in 2023 listed as 'Ceased Other'—what circumstances caused these closures, and were they related to a specific operational or compliance issue?

Given the 8.5% annual closure rate, what profitability and break-even timeline do existing franchisees typically achieve in their first 3-5 years of operation?

Why has the technology fee of $42 monthly been set significantly below the automotive franchise category average of $156-493, and is this fee subject to increase?

The total potential contract term of 35 years is above typical automotive franchises—what conditions must a franchisee meet to secure all 5 renewal periods?

What specific renewal conditions apply beyond the standard contract compliance, and how frequently have renewal requests been denied in the past 5 years?

The franchisor was defendant in 14 litigation cases—what are the common themes or claims across these cases (e.g., payment disputes, territory encroachment, operational mandates)?

Transfer fees are significantly lower at $2,500 compared to the typical $4,500-13,750 range—what requirements or franchisor approvals are needed for a unit transfer?

With 20 termination cause provisions in the contract, compared to the typical 13-18, what are the most frequently cited reasons for franchisor-initiated terminations?

The 15-day cure period for payment defaults is standard, but what recourse do franchisees have if they dispute a claimed default or demand for cure?

Can you provide contact information for at least 10 franchisees who have exited the system in the past 2 years to discuss their closure reasons?

How does the franchisor enforce rental rate controls for National Accounts, and what flexibility do individual franchisees have in pricing strategy?

Given the 8 designated or approved suppliers requirement, what cost comparison data exists between approved supplier pricing and open-market alternatives?

The non-compete clause is limited to 1 year and 5 miles—why is this narrower than typical automotive franchises, and what prevents a franchisee from opening a competing rental location immediately?

What training and ongoing support are provided to help franchisees improve profitability, given the elevated exit rate in the system?

Are there any settlement agreements or non-disclosure agreements related to the 14 litigation cases where the franchisor was defendant that might limit transparency?

The ad fund rate is 0%—how does the franchisor support system-wide marketing, and are individual franchisees expected to fund local marketing independently?

What happens to exclusive territory protections if a franchisee's unit closure or non-renewal occurs—how quickly can that territory be reassigned to a new franchisee?

In the past 3 years, how many franchisees have exercised the renewal option, and of those, how many were able to renew on the original terms versus renegotiated terms?

Can the franchisor provide Item 19 financial performance data or comparable unit economics from similar-sized franchisees to validate profitability expectations?