Rocket Fizz

The termination rate of 4.0% is above the typical range for retail franchises. Can you provide specific details on what violations led to the 4 terminations in 2024 and how many relate to monetary versus non-monetary defaults?

The franchise agreement lists 23 termination causes versus a typical range of 14-19 for similar franchises. Can you explain which of these 23 causes are considered curable versus immediate termination offenses?

Unit closures doubled to 7 in 2024 from 2-3 in prior years. How many of these 7 closures were franchisor-initiated terminations versus voluntary owner closures, and what were the primary reasons?

The non-compete restriction of 5 miles is significantly shorter than the typical 10-20 mile range. Does this 5-mile radius apply only within the immediate franchise territory or to any Rocket Fizz location nationwide?

The renewal conditions count of 11 is above typical range. What specific conditions must franchisees meet to qualify for renewal of their 10-year term, and are any financially based or performance-based thresholds involved?

With only 2 years of post-termination non-compete protection, how does Rocket Fizz prevent former franchisees from immediately opening competing candy/novelty shops in the same territory?

The franchise requires personal guarantees from all owners and their spouses and family members in the same household. In what situations has this extended guarantee been enforced against family members?

Mandatory operating hours are set at 8 hours per day, 7 days per week. Are franchisees permitted to reduce hours seasonally or during low-revenue periods, and what penalties apply for non-compliance?

The franchise has zero litigation cases on record. Does this reflect genuine operator satisfaction, or are there dispute resolution mechanisms (mediation, arbitration) that might not appear in litigation data?

Minimum purchase standards are required for authorized products. What are the specific minimum purchase quantities and annual spend requirements, and how are these enforced?

Transfer fees are $11,000. In the 2 unit transfers that occurred in 2024, were these transfers approved, and were there any disputes or delays in the approval process?

The system grew 13.5% in 2024 despite 7 unit closures. How many new units were opened versus transferred or acquired to achieve this net growth, and what is the projected unit growth for 2025?

Late payment interest is charged at the maximum rate permitted by law. What is the specific interest rate percentage, and how frequently are franchisees assessed late fees?

The renewal fee is $5,000 for a 10-year renewal. Is this fee negotiable, and are there circumstances under which franchisees can renew on modified terms?

Only 10-day cure periods apply for non-monetary defaults before termination. In the 4 terminations during 2024, how many franchisees were provided the full 10-day cure period, and were any cure attempts successful?

The franchisor has authority to establish pricing guidelines for authorized products. How often have pricing guidelines been changed in the past 3 years, and what impact did these changes have on franchisee profitability?

With 101 current units, how many locations are in each state, and are there plans to open additional locations in currently underserved markets or territories near existing franchisees?

The Item 19 shows median gross sales of $444,437 and average of $514,397. What percentage of units fall below the median, and what is the range from lowest to highest performing units?

Can you provide the Item 19 disclosure statement details, including data on franchisee profitability (net income), operating costs, and how many franchisees are profitable after all fees and expenses?