Quality Inn

The technology fee of $855 monthly exceeds the typical range for hospitality franchises by over $100. Can you provide a detailed breakdown of what services and systems are included in this fee?

You currently have 4 pending litigation cases with the franchisor as defendant. What are the nature of these cases, what are the key issues in dispute, and what is the expected timeline for resolution?

You have initiated 105 cases as plaintiff against franchisees, far exceeding the typical range. What percentage of these cases resulted in settlements versus judgments, and what are the most common reasons for litigation?

The franchise agreement provides no renewal options after the initial 20-year term. What happens to franchisees at the end of their term—are they required to exit the system, or are informal renewal arrangements possible?

Your termination causes count of 12 is lower than the typical range for this category. Are there specific operational failures or breaches not listed in the standard termination clause that could trigger termination in practice?

The agreement allows only 10 days to cure non-payment of fees. How frequently is this short cure period invoked, and what percentage of franchisees fail to cure within this timeframe?

Since territory is non-exclusive and you offer no encroachment protection, how do you prevent the franchisor from opening competing Quality Inn locations in a franchisee's market area?

Unit transfers totaled 113 in 2023 and 81 in 2024, representing substantial turnover. What are the primary reasons franchisees are selling their units, and are there restrictions on who can acquire transferred units?

The franchise has Item 19 disclosure available. Will you provide the most recent Item 19 showing actual unit sales, revenues, and profitability data for different unit types and markets?

What specific support does Quality Inn provide to help franchisees maintain or grow revenues given the highly competitive hotel market?

How many of the 105 plaintiff cases involved collection of unpaid royalties or fees versus disputes over other contractual obligations?

The non-renewal rate is listed as 0.4%, but with zero renewal options after 20 years, how do existing franchisees choose to proceed at contract expiration?

Can you clarify whether the 12 termination causes provided represent all grounds for immediate termination, or if there are additional non-curable defaults not explicitly listed?

What is the typical cost to remodel or upgrade a Quality Inn franchise during its 20-year term, and are upgrades required at specific intervals?

The transfer fee matches the franchise fee at $45,000. Are there any contingencies where this fee could be waived or reduced, such as for failing units or family transfers?

How does Quality Inn's litigation strategy impact franchisee morale and recruitment, given the high number of plaintiff cases?

What percentage of the 50 unit closures in 2024 were due to franchisor termination versus franchisee voluntary exit or other causes?

Are there market-specific data available showing which geographic regions have higher closure and transfer rates within the Quality Inn system?