What are the specific details of the 100 cases where the franchisor was the plaintiff, and what were the outcomes or settlements?
#1
All 4 pending litigation cases involve the franchisor as defendant—what are the primary claims, and how do they relate to franchise operations or franchisor obligations?
#2
Can you provide the specific breakdown of closure causes for the 145 closed units over the past 3 years—what percentage were owner-initiated vs. market-driven vs. franchisor-directed?
#3
The system lost 56 units over 3 years (11.1% net decline). What is the franchisor's strategic plan to reverse this contraction, and what support metrics demonstrate execution?
#4
Why does the franchise agreement provide zero renewal options after the initial 20-year term? What happens to franchisees at term expiration?
#5
Given the non-exclusive territory policy, how does the franchisor manage potential encroachment of new Rodeway Inn locations near existing franchisee properties?
#6
The franchise fee of $25,000 is significantly below industry norms of $35,000-$75,000. Does this reflect a competitive positioning strategy, or are there limitations on franchisor support compared to higher-fee competitors?
#7
What specific investment costs and working capital are required beyond the $25,000 franchise fee to open and operate a Rodeway Inn property?
#8
Can you clarify the 12 non-curable defaults in the termination clause? Under what circumstances has the franchisor exercised termination without a cure period?
#9
The royalty structure includes a 5.0% royalty and 3.5% ad fund. Are these rates competitive within the budget hotel segment, and do they vary based on location or unit performance?
#10
How many of the 4 pending litigation cases involve disputes with franchisees vs. other parties (suppliers, employees, regulators)?
#11
The system-wide turnover rate of 30.6% over 3 years is nearly double the typical range. What exit surveys or feedback have revealed about franchisee satisfaction and reasons for leaving?
#12
What is the average unit volume (AUV) or revenue per unit, and how has this trended over the past 3 years given the unit closures?
#13
The Territory & Contract score of 35 is well below the typical range (50-75). What specific contract limitations most concern prospective franchisees?
#14
Are the $15,000 transfer and renewal fees negotiable, and what are the conditions and timeline for transferring a franchise to a new owner?
#15
With a System Health score of 32 (typical range 50-68), what operational or financial challenges is the franchisor addressing to stabilize the franchise system?
#16
The technology fee of $719 is charged annually—what systems and services does this cover, and how frequently are updates or new features introduced?
#17
What percentage of current Rodeway Inn franchisees have been with the system for more than 10 years, and what is the average unit lifespan?
#18
Given the mandatory binding arbitration clause in Maryland law, what specific disputes cannot be arbitrated, and what legal costs should be anticipated for franchise-related disputes?
#19
Are there any Item 19 financial performance reports available, and if so, what are the median or average gross revenues, operating expenses, and net income for comparable units?
#20