Red Robin International, Inc.

What were the circumstances of the 3 litigation cases filed, particularly the 2 cases where Red Robin was the plaintiff? What were the outcomes or current status of each?

The franchisor initiated 2 cases as plaintiff—were these related to royalty collection, operational standards, or contract violations? How many cases were successfully resolved in the franchisor's favor?

Can you provide details on the 20 unit closures that occurred in 2022? Were these financially distressed franchisees, or were there other contributing factors such as underperforming locations?

The advertising fund rate of 4.0% is above the typical range of 1.0-3.0%—what specific marketing initiatives and programs does this fund support, and how is fund performance measured and reported to franchisees?

You offer no renewal options—meaning franchisees have no right to renew after 20 years. How does the franchisor typically handle expiring franchise agreements? Are renewal negotiations available, or are some franchisees forced to exit?

The non-compete clause extends only 5 miles, which is below the typical range of 7.5-15.0 miles for casual dining. Why was this narrower radius chosen, and does this create risk of competitive encroachment for existing franchisees?

The transfer rate of 5.4% is above the typical range—are these transfers primarily due to franchisee-initiated sales or forced transfers due to non-compliance issues?

With 25 termination causes listed (above the typical 15-20 range), can you clarify which causes are non-curable vs. curable, and what cure periods apply to each?

The franchise agreement requires personal guarantees from parent companies with joint and several liability—in the 3 litigation cases, were personal guarantees or indemnification clauses invoked against franchisee principals?

Late payment fees of $500 per delinquent payment plus 18% annual interest are specified—how frequently do franchisees incur these fees, and are they forgiven if payment is made within a grace period?

All restaurant items must be purchased from franchisor-approved suppliers—can franchisees request approval of alternative suppliers, and what is the typical approval timeline and criteria?

The investment score of 16 is significantly below the typical range of 73.0-77.0—what is the estimated total capital investment required to open a Red Robin franchise, including real estate, equipment, working capital, and training?

Can you provide actual Item 19 financial performance data (average unit volumes, operating expenses, profit margins) for franchisees in different markets or age categories, even if not formally filed?

Of the 5 units that transferred in 2023 and 0 units that transferred in 2024, were any of these transfers rejected by the franchisor, and what are the criteria for transfer approval?

The system declined by 33 units over 3 years—what is the franchisor's growth strategy going forward? Are you actively recruiting new franchisees, or is the focus on supporting existing locations?

Are there any pending litigation cases or investigations by state regulators regarding franchise compliance, disclosure practices, or operational standards?

The contract terms score of 75 is above the typical range of 60.0-65.0—does this reflect particularly franchisee-favorable terms, or franchisor-favorable terms? What specific contract provisions drive this higher score?

What support and training does the franchisor provide to help franchisees achieve profitability? Are there refresher training programs, marketing assistance, or operational coaching available post-launch?

Can you explain the breakdown of the 2 cases initiated by Red Robin as plaintiff—were these collection actions, injunctive relief for contract violations, or other categories?

If a franchisee operates a location for 20 years and the agreement expires, what is the expected exit process? Will the franchisor have any claim to equipment, inventory, or lease improvements?