Radiant Waxing

What is the current status of the 1 pending litigation case, and what are the specific claims or issues involved?

The transfer rate of 15.4% is significantly above typical for this category. Are transfers primarily driven by franchisees exiting the business, or are many units being transferred to family members or other entities?

Can you provide details on the 6 units closed in 2024 and the 7 closed in 2023? What were the primary reasons for closure (financial distress, franchisor termination, voluntary exit)?

Why has the system declined from 68 to 59 units over 3 years? Are there specific market conditions, system changes, or franchisor decisions contributing to this contraction?

The termination rate of 10.2% is significantly higher than typical. How many of these terminations resulted from franchisor-initiated actions versus franchisee defaults?

The monthly technology fee of $719 substantially exceeds the category average of $165-$427.50. What specific services and functionality does this fee provide, and is this fee locked in or subject to increases?

The transfer fee of $25,000 is above the typical range. How is this fee justified, and are there any scenarios where it could be waived or reduced?

The contract lists 23 non-curable default causes versus a typical range of 15-21. Can you clarify which 3-8 additional defaults are included, and how quickly could a franchisee be terminated for these violations?

Territory is protected but not exclusive. How does the franchisor prevent encroachment within the 3-mile non-compete zone, and have there been any encroachment disputes?

The renewal condition requires payment of 25% of the then-current franchise fee ($12,500 based on current $50,000). If the franchise fee increases to $75,000 or higher, what would the renewal cost be?

All disputes must be resolved through binding arbitration in Denver, Colorado. Has this venue been a cost barrier for franchisees, and what is the average cost of arbitration in recent cases?

What percentage of the 59 current units are meeting or exceeding the median gross sales of $552,942, and what is the typical payback period for franchisees?

Personal guarantees are required from owners and potentially spouses. In the 2023-2024 closures, did franchisees face personal liability beyond the franchise investment?

The System Health score is 17/100, substantially below the 50-75 typical range. What specific operational or support metrics drive this low score, and what is the franchisor doing to improve it?

You mention cure periods of 3-30 days depending on violation type. In practice, how often have franchisees successfully cured defaults within these timeframes versus been terminated?

The non-compete radius of 3 miles is at the lower end of typical. Given the high transfer rate, are franchisees purchasing nearby competing concepts after transferring or exiting?

What support and training does the 88/100 Support & Training score reflect, and are these services included in the ongoing fees or subject to additional charges?

Has the franchisor made any changes to supplier requirements, pricing mandates, or operational controls in the past 12 months that may have contributed to recent unit exits?

Among the 10 units transferred in 2024, how many involved the new owner continuing as a waxing franchise versus converting to a different concept?

What is the franchisor's strategy for stabilizing unit count and reversing the current 4.6% annual decline trend?