SailTime

Can you provide specific reasons for the 8 unit closures over the past 3 years, particularly the 4 closures in 2023? Were these terminations due to performance issues, compliance violations, or other specific causes?

With a termination rate of 16.7% and zero unit transfers in the past year, are franchisees voluntarily exiting the system, or is the franchisor actively terminating underperforming locations?

The system has declined from 25 units to 22 units over 3 years. What is the franchisor's growth strategy to reverse this negative trend, and what support is being provided to existing franchisees?

Financial Performance score of 40/100 falls below the typical range. Does the franchisor provide an Item 19 financial performance statement, and if not, what financial data can be shared about unit profitability?

System Health score of 14/100 is significantly below the typical range of 50-75. What specific operational or support deficiencies contribute to this low score?

The non-compete radius of 50 miles is double the typical range for this category. How is this enforced post-termination, and are there any cases where terminated franchisees have competed within this territory?

Transfer fees are only $5,000 compared to the typical $8,937-$18,437. What is the process for transferring a franchise, and what franchisor approval requirements exist?

Given that no litigation has been reported, have there been any disputes with franchisees that were resolved through arbitration outside of court filings?

Support & Training score of 76/100 is below the typical range of 79-93. What specific training and ongoing support is provided to franchisees, and how frequently is this updated?

What are the specific termination causes outlined in the franchise agreement, and how many of the 8 closures involved contract violations versus business performance issues?

The franchise fee of $25,000 is significantly lower than typical. What is included in the initial investment, and are there hidden costs or required supplier purchases that increase the true startup cost?

With a 7% royalty rate, how is this calculated—on gross sales, net sales, or revenue from specific services?

What insurance requirements exist beyond the $1,000,000 general liability coverage, and how have these requirements changed in recent years?

Are watercraft and equipment purchases required only from franchisor-approved suppliers, and what percentage markup or commission does the franchisor receive from these supplier relationships?

How many of the current 22 units are company-owned versus franchisee-owned, and what is the franchisor's strategy for the company-owned locations?

For the 4 units that closed in 2023, how long had each been operating before termination, and what were the specific performance metrics that led to termination?

Does the franchisor offer any financial assistance, restructuring, or remediation programs before terminating underperforming franchisees?

What is the dispute resolution cost and process for arbitration claims, and are there any restrictions on the types of claims that can be arbitrated?

Given the declining unit count, what is the current financial health of the franchisor, and how might this impact ongoing support and system viability?

Are there any planned changes to the franchise agreement, fee structure, or operational requirements that prospective franchisees should be aware of?