Petland

Can you provide detailed information about the 6 litigation cases initiated against Petland over the past 3 years, including the nature of claims, parties involved, and resolutions or current status?

Why is Petland's royalty rate of 4.5% significantly lower than the typical 6.0-7.0% range for pet services franchises, and are there performance-based adjustments or tiers?

The transfer fee of $25,000 is substantially higher than the typical range of $5,750-$15,000. What services and approvals does this fee cover, and are there circumstances where it could be waived or reduced?

What factors contributed to the decline in unit count from 99 units (3 years ago) to 91 units currently, and how does management plan to reverse this -2.77% three-year CAGR?

Of the 9 units that closed or ceased operations over 3 years, what were the primary reasons for exit (e.g., profitability, owner retirement, market conditions, franchisor support)?

Can you explain the significant increase in unit transfers in 2024 (6 transfers) compared to 2022-2023 (2-3 transfers)? Are these transfers driven by owner preference or franchisor decisions?

The transfer restriction clause requires franchisor approval subject to 12 conditions and a 50% transfer fee. What are these 12 conditions, and how frequently are transfer requests denied or delayed?

Given the high gross sales figures ($2.7-2.9M median/average), what is the typical net profit margin for units, and are there minimum performance thresholds franchisees must maintain?

How does the 10-day cure period for defaults (non-payment, misuse of marks, false reporting) work in practice, and have any franchisees been terminated during the past 3 years for failing to cure?

The ad fund rate of 0.5% is below the typical 1.0-2.0% range. How is this fund deployed, and can franchisees request an accounting or have input on advertising strategies?

Why does the non-compete clause extend 3 years (versus the typical 2 years), and how is this enforced geographically beyond the 25-mile radius?

What led to the 6 litigation cases against the franchisor, and have any resulted in franchisor liability, settlements, or policy changes that affected franchisees?

The franchise agreement provides for a 20-year initial term with a 20-year renewal option (40 years total potential term), which significantly exceeds typical pet services franchises. What are the terms for modifications or early termination, and are there buyout provisions?

With mandatory binding arbitration and class action waivers in the dispute resolution clause, are there any known disputes currently in arbitration that franchisees should be aware of?

The late payment provisions include a 10% late fee plus 18% annual interest. How many franchisees have incurred late fees in the past 12 months, and is there a payment plan option for cash flow difficulties?

Personal guarantees are required from all shareholders, directors, and officers. Can you explain what liabilities these guarantees cover and whether they survive franchise termination or transfer?

Are there minimum sales or revenue performance requirements to maintain the franchise, and what happens if a unit falls below specified thresholds?

The renewal fee is $0. Are there other costs or renegotiation requirements upon renewal after 20 years, and what changes to royalties or other ongoing fees might occur?

How does Petland handle encroachment—specifically, what territorial protections exist if the franchisor opens new units within your 25-mile radius?

What support and training services are included in the franchise fee versus charged separately, and have there been changes to support offerings over the past 3 years that affected franchisee operations?