Can the franchisor provide detailed case summaries for the 15 litigation cases, including the nature of disputes, outcomes, and settlements or judgments?
#1
Of the 31 unit closures in 2024, what were the primary reasons franchisees cited for exiting (financial difficulty, market conditions, operational challenges, or other factors)?
#2
Why did the system contract from 94 units to 72 units in a single year? What specific conditions or market factors contributed to the 33% turnover rate?
#3
The Technology Fee of $910 monthly is substantially higher than typical for this category. What specific services and software does this fee cover, and is it subject to annual increases?
#4
The Franchise Fee of $65,000 exceeds typical ranges. How does the franchisor justify this premium, and what additional support or services are included compared to competitors?
#5
The Transfer Fee of $20,000 is above typical ranges. Is this fee applied to all transfers, and are there circumstances where it might be waived or negotiated?
#6
With 2 litigation cases currently pending, can the franchisor disclose the subject matter and expected timeline for resolution?
#7
The franchisor has been named defendant in 12 cases. What were the primary categories of claims (contract disputes, regulatory violations, misrepresentation, etc.), and what preventive measures have been implemented?
#8
Can you provide financial performance data showing what percentage of the 72 current units are profitable, breaking down by unit age and location?
#9
The Non-Compete clause restricts activity within 20 miles for 2 years post-exit. How is this enforced, and have there been cases where franchisees violated this clause?
#10
With a 39.1% turnover rate over 3 years, what is the average lifespan of a ProLift unit, and what percentage of franchisees complete their initial 10-year term?
#11
The renewal fee is $15,000 (25% of current franchise fee). What are the 9 specified conditions franchisees must meet to qualify for renewal?
#12
The Termination Causes Count of 22 is above typical ranges. Can the franchisor provide the list of causes and frequency with which each has been invoked?
#13
Are there specific geographic markets where unit closures have been concentrated, suggesting regional market challenges?
#14
What operational support and training does the franchisor provide to help new franchisees achieve profitability within the first 2-3 years?
#15
The System Health score is 0/100. Can the franchisor explain what factors contributed to this score and what improvements are planned?
#16
Have there been significant changes to the business model, operational requirements, or fee structure in the past 3 years that may explain the escalating closure rate?
#17
Of the 3 cases where the franchisor was plaintiff, what were the outcomes, and did the franchisor recover damages or cease operations?
#18
The Renewal Conditions require meeting 9 specifications. Are these conditions significantly more stringent than what franchisees agreed to in their original franchise agreement?
#19