PayMore

The system grew from 9 units to 58 units in 3 years (86% CAGR). What were the primary drivers of this expansion—aggressive recruitment, existing franchisees opening multiple locations, or acquisition of existing businesses?

Given the rapid expansion, what is the breakdown of units opened in 2022, 2023, and 2024? How many of the current 58 units have been operating for less than 1 year?

Only 1 unit closed in 2024 out of 58. Can you provide details about this closure, including the reason (financial difficulty, owner decision, franchisor action, or other) and the unit's tenure?

Support & Training scores 80, below the typical range of 84-99 for retail franchises. What training and ongoing support does the franchisor provide, and how does this compare to competitors in the category?

The 15-year initial term exceeds the typical 10-year standard. What is the rationale for the extended initial term, and are there circumstances under which franchisees can exit earlier?

The non-compete restriction extends 25 miles, exceeding the typical 10-20 mile range. Can you clarify how this 25-mile radius is measured and whether it applies to all competitive businesses or only direct PayMore competitors?

You mention 5 supplier restrictions in the operational control clause. Which suppliers are franchisor-approved or exclusive, and what are the pricing terms or markup structures for these mandatory purchases?

The renewal condition requires franchisees to 'refurbish, upgrade, or renovate' their store to current standards. What are the estimated costs for meeting these renewal requirements, and are there any approved vendors or design specifications?

Median gross sales are $1,268,849, above typical range. What is the median profitability (net income) after accounting for royalties, ad fund, and other franchisee expenses? How many units are profitable?

Can you provide a breakdown of the 1 unit closure and 1 additional exit in 2024? Were these voluntary (owner decision) or involuntary (franchisor termination), and what were the circumstances?

The 5-day cure period for monetary defaults is very short. Can you provide examples of situations where franchisees have been in default and how the cure period was applied in practice?

What are the 15 non-curable defaults that result in immediate termination? Can you clarify which of these are most frequently cited and provide examples of franchisees terminated for each?

Personal guarantees are required from all principals. If a franchisee defaults, does the franchisor pursue collection against the personal guarantee, and have there been cases where personal assets were seized?

Are there any ongoing disputes with current franchisees, regulatory investigations, or complaints filed with the FTC or state attorneys general that are not captured in formal litigation?

Units 1 year ago numbered 21, but current units are 58. Of the 37 net additions, how many were new franchise sales versus transfers/acquisitions of existing locations?

The transfer fee is $10,000. How often do franchisees transfer their locations, and are there restrictions on who can acquire a transferred unit?

Item 19 is provided showing financial performance. Are the reported sales figures based on actual franchisee data or projected figures, and how many franchisees voluntarily reported data?

The franchisor can establish minimum and maximum pricing for franchisee sales. How frequently are these pricing controls adjusted, and have they resulted in conflicts with franchisees or complaints about profitability?

Post-term restrictions extend to 'competitive businesses located anywhere in the United States, its territories, or other countries.' How broadly is 'competitive business' defined, and have there been disputes over non-compete enforcement?

With zero litigation cases in 3 years and zero terminations, what factors do you attribute to this exceptionally low conflict rate compared to industry peers?