Russo's New York Pizzeria

What specific issues led to the 1 pending litigation case, and what is the expected timeline for resolution?

Can you provide details about the case where the franchisor was plaintiff—what was the nature of the dispute and what outcome is the franchisor seeking?

Why did closures spike dramatically in 2024 (8 units) compared to 2022 and 2023? Were there specific operational or market challenges?

Of the 13 units closed between 2022-2024, how many were attributed to franchisee inability to meet financial obligations versus market conditions or other factors?

Given the 11.8% termination rate, what are the most common reasons the franchisor terminates franchise agreements?

The system declined from 36 to 34 units over 3 years. What is the franchisor's growth strategy to reverse this trend, and what unit growth targets exist?

Average gross sales ($882,313) are significantly below typical casual dining franchises ($1.16M-$2.68M). Can the franchisor explain this variance and whether certain locations perform at typical levels?

What percentage of current franchisees are profitable, and what is the average unit volume for profitable versus unprofitable locations?

The non-compete radius of 20 miles is larger than typical. How was this distance determined, and can it be negotiated based on specific market conditions?

Why is the total potential contract term only 10 years compared to the typical 20-25 years for casual dining franchises? Are there renewal options beyond the initial term?

The franchise agreement requires 4 conditions for renewal. Can you clarify what 'substantial compliance' means and provide examples of compliance failures that have resulted in non-renewal?

Mandatory mediation and arbitration must occur in Harris County, Texas. For franchisees located outside Texas, what are the practical costs and logistics of dispute resolution?

The agreement allows termination for payment defaults with a 5-day cure period. Have franchisees been terminated under this provision, and what is the typical default amount?

Personal guarantees are required from all principals and spouses. In cases of dispute, have the franchisor pursued collection against individuals personally rather than just the business entity?

The Technology Fee of $54 monthly is significantly below the typical $90-$500 range. Does this fee cover all required technology systems, or are there additional technology costs franchisees should expect?

The franchisor retains supplier approval authority and pricing control. Can you provide examples of suppliers that have been denied approval and on what grounds?

With a 20.6% 1-year transfer rate (highest among exit types), why are franchisees transferring their units? Are most transfers selling to new franchisees or to existing franchisees expanding?

Item 19 financial performance data shows wide variance between top and bottom quartile performers. What operational differences distinguish high-performing from low-performing units?

What support or intervention does the franchisor provide to units falling into the bottom performance quartile to help them improve sales?