Can you provide detailed information about the 11 unit closures that occurred in 2024? What were the primary reasons for these closures—economic factors, operational challenges, or individual franchise performance issues?
#1
The termination rate of 11.3% is significantly above industry norms. What specific breaches or violations have led to franchisor terminations, and are there patterns to these terminations?
#2
With 39.5% of units turning over across a 3-year period, how does the franchisor support franchisees to improve retention? What operational or financial support is provided to underperforming units?
#3
The system had zero net growth in the past year despite adding units from 38 to 53 over three years. Why has growth stalled, and what is the franchisor's growth strategy for the next 3-5 years?
#4
Given that Item 19 (financial performance representations) is not provided, what actual financial performance data can the franchisor share from existing units? What is the average unit volume and profitability?
#5
Can you clarify the 10 renewal conditions that franchisees must meet? Are these conditions typically met by franchisees, or do they create barriers to renewal?
#6
The termination clause permits immediate termination for 13 non-curable defaults. Can you provide examples of these non-curable defaults and scenarios where franchisees have been immediately terminated?
#7
Personal guarantees and spouse guarantees are required. In cases where franchises have been terminated or closed, what has been the franchisor's enforcement of these personal guarantees?
#8
The franchisor can control pricing and require purchases from approved suppliers. How frequently does the franchisor adjust minimum/maximum resale prices, and how much flexibility do franchisees have in supplier selection?
#9
What is the average unit volume for units that have been operating for 1, 3, and 5+ years? Are there significant performance differences between newer and established units?
#10
Can you provide a breakdown of the 5 units that ceased operations for 'other reasons' in 2024? What circumstances led to these closures?
#11
The renewal fee is $12,000 and transfer fee is $11,700. Are there any other costs or conditions associated with renewal that franchisees should be aware of?
#12
What training and ongoing support are provided to franchisees? Given the Support & Training score of 82/100, which falls below the typical range, what gaps exist in training or support?
#13
How does the franchisor monitor compliance with the operating requirements and approved supplier restrictions? What enforcement mechanisms are in place?
#14
Can you provide contact information for at least 10 current and 5 former franchisees, including some who have recently exited the system, so I can discuss their experiences directly?
#15
What is the typical time to profitability for a new Rush Bowls unit, and what initial capital should a franchisee expect to deploy before the unit becomes cash-flow positive?
#16
The Risk Factors score of 49/100 falls below the typical range. What specific operational, market, or financial risks does the franchisor identify as affecting unit profitability?
#17
How does the franchisor define 'curable' versus 'non-curable' breaches in the termination clause, and what happens during the 10-30 day cure period?
#18