Rytech

The 3-year turnover rate of 18.1% exceeds the typical range for this category. Can you provide a detailed breakdown of why units exited, specifically distinguishing between franchisee-initiated exits versus franchisor-initiated terminations?

Six units were terminated in 2024 alone, and the termination rate of 6.4% is above the typical range. What are the primary reasons for these terminations, and what specific performance metrics trigger termination?

What is the reasoning behind the $500,000 minimum revenue requirement by month 24? What percentage of franchisees typically fail to meet this threshold, and what happens if this target is missed?

The non-compete radius of 10 miles is significantly below the typical range of 21.25-50.0 miles for this category. How is this narrower radius enforced, and what protections exist to prevent encroachment by terminated or transferred franchisees within this zone?

Can you explain why the total potential contract term of 35 years extends well beyond the typical 10-20 year range? Are there any conditions under which this extended term could be modified or forfeited?

The one pending litigation case involved the franchisor as defendant. Can you provide details about the nature of this dispute, the claims involved, and the current status?

Given the $115 monthly technology fee is below industry norms, what specific technology services and support are included? Are there additional technology costs franchisees should anticipate?

The territory is marked as protected but not exclusive. Can the franchisor open company-owned locations or additional franchises in or adjacent to my territory?

You require personal guarantees from all owners and bind spouses to non-compete and non-disclosure covenants. Can spouses be released from these obligations if they have no involvement in franchise operations?

The binding arbitration clause requires individual arbitration and waives class actions and jury trials. What is the typical cost and timeline for arbitration disputes under this agreement?

Late payments incur 1.5% monthly interest plus 18% annual interest. Are there any circumstances where these penalties could be waived or reduced for good-faith payment delays?

Seven units closed in 2024. Can you provide the specific closure reasons for each (e.g., voluntary exit, termination, insolvency) and whether any were related to the $500,000 revenue requirement?

The renewal fee is $9,000, equal to the transfer fee. If a franchisee renews after the initial 10-year term, what changes to the franchise agreement typically occur during renewal?

The curable default cure period ranges from 5 to 30 days depending on the breach type. Can you provide examples of defaults that only allow 5-day cure periods versus those allowing 30 days?

What recourse do franchisees have if the franchisor fails to provide the promised support and training, which scores 90/100 in your system assessment?

Are there any circumstances where the franchisor would reimburse indemnified losses, or do franchisees bear all liability regardless of franchisor negligence or breach?

How many of the 94 current units are in their initial 10-year term versus renewal periods, and what is the renewal rate historically?

The territory score of 60 is below the typical range. What specific factors contributed to this lower territory score, and how does it compare to your other franchise systems?