RestoPros

Of the 3 pending litigation cases, what are the specific claims and what is the estimated timeline for resolution? Are any cases related to franchisee terminations or operations?

The franchisor initiated 1 litigation case as plaintiff—what was the nature of this case and against whom was it filed (franchisee, supplier, or other)?

Why did unit closures double from 4 in 2023 to 8 in 2024 while the system simultaneously grew from 47 to 93 units? What is driving both the expansion and the closures?

Of the 5 terminations in 2024, how many were initiated by the franchisor for non-compliance versus voluntary shutdowns by franchisees?

The contract requires minimum gross sales of $30,000 per month to avoid termination. How many of the 2024 closures and terminations were due to franchisees failing to meet this threshold?

What support or remediation does the franchisor provide to struggling franchisees before terminating their agreement?

The transfer fee of $5,000 is below market range. Are there additional hidden fees, approval requirements, or restrictions on franchise transfers beyond the stated fee?

Can you provide the breakdown of the 3 units that ceased operations in 2024 for reasons other than closure or termination? What does 'ceased other' mean operationally?

Given the 5.4% termination rate, what specific operational or financial metrics trigger franchisor termination, and how much notice and opportunity to cure do franchisees receive?

The non-compete restriction is only 20 miles, below the typical 21-50 mile range. If a franchisee exits, how protected is the remaining franchisee network from competition within the 20-mile zone?

Item 19 financial data shows top quartile sales of $3.5M, but median is only $687K. What percentage of franchisees operate in each sales quartile, and what are the reasons for such wide variance?

The royalty structure (7% + 1% ad fund + $375 tech fee) is mandatory. Are there volume discounts, performance incentives, or relief provisions for underperforming units?

Of the 3 pending litigation cases, do any involve regulatory agencies (labor, health, environmental), or are they exclusively between franchisor and franchisees?

The contract requires mandatory binding arbitration with class action waivers. How many disputes have been arbitrated in the past 3 years, and what were the average settlement amounts?

The personal guaranty clause includes unlimited liability for owners and spouses. Has the franchisor ever pursued personal guarantees against franchisee owners or their families in litigation?

What is the actual renewal rate for franchisees completing their initial 10-year term? The data shows 0% non-renewal rate, which seems inconsistent with the termination and closure data.

The system grew from 16 units (2022) to 93 units (2024). Were these 77 new units acquired through recruitment, acquisition of existing businesses, or conversion of company-owned locations?

Given the 8.6% annual exit rate, what is the actual average lifespan of a RestoPros franchisee, and how does franchisee longevity differ between newer recruits (2023-2024) versus established units?

Can you provide a detailed breakdown of the 3 pending cases by case type (breach of contract, wrongful termination, etc.) and jurisdictions where they are being litigated?

The franchisor has broad audit rights and can set maximum/minimum prices. How frequently does the franchisor conduct audits, and what has been the most common reason for findings of non-compliance?