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Of the 2 pending litigation cases where the franchisor is plaintiff, what are the specific allegations and what financial exposure do they represent?

The system has contracted from 150 to 134 units in 3 years with 16 closures in 2024 alone. What does management attribute this acceleration to, and what corrective actions are underway?

Your System Health score is 26/100, significantly below the typical range of 50-70. What specific metrics drive this low score and how do you plan to improve them?

Why is the transfer fee set at $3,000 when the typical range for this franchise type is $7,500-$15,000, and could this structure change?

Can you provide details on the 6 franchises terminated in 2024 and the specific non-curable defaults that led to termination?

The bottom quartile of franchisees reports gross sales around $107,000, which is below typical ranges. What support or intervention is provided to underperforming units before termination?

With 25 termination causes listed in your agreement (above the typical 14-21), what are the most commonly invoked grounds for termination?

Your contract includes 11 renewal conditions compared to the typical 6-9. Can you clarify what remodeling and renovation investments franchisees must make to qualify for renewal?

How many of the 2 pending litigation cases involve franchisees, and what is the franchisor's estimated legal cost to resolve them?

The technology fee of $100/month is below typical ranges. What specific services and technology platforms does this fee cover, and could it increase?

Are the 2 franchisor-plaintiff cases still actively being litigated, or have they been settled? What was the outcome or current status?

What percentage of franchisees who reached the end of their initial 10-year term have elected to renew versus exit the system?

Given the exclusive territory protection, why have 9 units chosen to transfer in the past year rather than continue operations?

Can you provide a breakdown of the 16 closed units in 2024 by reason: how many were due to franchisor termination, voluntary closure, or other factors?

The renewal fee is $5,000. Beyond this fee, what are the estimated costs franchisees face to meet the 11 renewal conditions?

Personal guarantees are required from all 5%+ equity holders. How has the franchisor enforced guarantees in terminated franchises to recover damages?

What happens to franchisees who fail to meet renewal conditions after 10 years—are they automatically terminated or offered time to remediate?

The mandatory arbitration venue is at the JAMS office closest to Columbia, Maryland. How does this impact franchisees located in other regions in terms of travel costs and legal accessibility?

Of the 25 termination causes, how many are discretionary (subjective franchisor judgment) versus objective, measurable breaches?

Can you clarify the vendor approval process for required purchases across 5 categories (equipment, technology, inventory, supplies, vehicles, signs) and whether franchisees can source from competing vendors?