Can you provide detailed information on each of the 7 cases where the franchisor was named as defendant, including the allegations, outcomes, and resolution amounts?
#1
What is the status of the 6 pending litigation cases, and what are the primary allegations in these suits?
#2
Given the 25.0% termination rate, what specific franchise violations led to terminations in the last 2 years, and were all terminations properly cured within the specified periods?
#3
Why has the system declined from 49 units to 44 units over the past 3 years, and what retention strategies is the franchisor implementing to address the 33.3% annual turnover rate?
#4
The technology fee of $550 monthly significantly exceeds the typical range for this franchise type—what specific services and technology platform does this fee provide?
#5
Can you explain why your royalty rate of 4.5% is below the industry range of 5.25-7.0%, and whether this rate is competitively positioned within the real estate services sector?
#6
What Item 19 financial performance data can you provide, including median and average gross sales for franchise units, units reporting, and profitability benchmarks?
#7
Given the 0% transfer rate over the past year despite a $5,000 transfer fee, are there barriers preventing franchisees from transferring their units to new owners?
#8
Can you clarify the difference between the 11 curable defaults and 9 non-curable defaults listed in the termination clause, and provide examples of each category?
#9
How does the unlimited personal guarantee requirement and post-termination indemnification obligation protect or expose franchisees?
#10
With zero non-renewal rate but 25% termination rate, what is the franchisee experience at renewal time, and what percentage of franchisees choose to renew?
#11
Can you provide references from franchisees who have exited the system in the past 2 years to understand reasons for departure?
#12
What specific support and resources does the franchisor provide to help franchisees maintain compliance with the 11 curable defaults?
#13
Are there any regulatory investigations or complaints filed with state franchise authorities that may relate to the pending litigation?
#14
Given the protected territory with encroachment protection but non-exclusive assignment, how does the franchisor define and enforce territory boundaries to prevent competition?
#15
What is the average duration of a franchise relationship that results in termination versus voluntary closure, and do franchisees typically operate profitably before exit?
#16
Can you explain the methodology for calculating the System Health score of 19/100 and whether there are specific corrective action plans in place?
#17
What financial support or performance incentives does the franchisor offer to franchisees during their first 3-5 years to improve retention rates?
#18