Rocky Mountain Chocolate Factory

What are the specific reasons for the 13 unit terminations in 2025, and do they represent a pattern of underperformance or contract violations?

Can you provide details on the 1 pending litigation case, including the nature of the claim and expected timeline for resolution?

Of the 3 total litigation cases where the franchisor was defendant, what were the outcomes and settlements, if any, and do they relate to operational, financial, or territorial disputes?

The system lost 11 units in the past year (7.28% decline). What is the franchisor's strategy to reverse this trend and support existing franchisees?

Why is the termination rate at 8.6%, which is 14 times higher than the typical range for this franchise type?

The advertising fund rate of 1.0% is below industry typical range of 1.5-3.0%. How is the franchisor marketing the brand and supporting unit-level marketing efforts?

Can you explain the decision to set the non-compete radius at 25 miles, which exceeds the typical range for this type of franchise?

The transfer fee of $5,000 is significantly below the typical range of $7,500-$17,500. Are there any conditions or hidden costs associated with unit transfers?

What specific support and training does the franchisor provide given the System Health score of 27, which is substantially below the typical 50.0-75.0 range?

How many of the 23 units lost in the past 3 years were due to franchisee request versus franchisor termination?

The franchise disclosure includes Item 19 financial data. Can you provide context on median and average unit volumes, and what percentage of franchisees achieve the disclosed figures?

Are there any restrictions beyond the 2-year, 25-mile non-compete that limit a franchisee's ability to operate in related food businesses?

The renewal conditions count of 6 is below typical. What are the specific conditions a franchisee must meet to renew their agreement at the end of the initial 10-year term?

Given 6 curable defaults and 15 non-curable defaults in the agreement, can you clarify which operational issues result in immediate termination versus those with a 30-day cure period?

The franchisor requires purchases from designated suppliers across 8 product categories. What is the markup or pricing structure for these required purchases, and does the franchisor have any financial interest in these suppliers?

Why did the system contract from 157 units (3 years ago) to 140 units currently, and what does the franchisor project for the next 2-3 years?

Are existing franchisees required to sign personal guarantees covering obligations after the franchise term ends, and what specific liabilities extend into the post-term period?

The Investment Costs score of 61 is below typical. Beyond the $35,000 franchise fee, what are the total startup costs a new franchisee should expect?

What dispute resolution process applies outside of the 7 states with non-binding arbitration requirements, and has Colorado venue been an issue for out-of-state franchisees?

Can you provide the operational and financial performance data for franchisees who have been in the system for 1, 3, and 5+ years to assess long-term unit economics?