Signature Inn

Can you provide details on the 8 cases where the franchisor was named as defendant? What were the primary claims and how were these resolved?

What is the nature of the 1 pending litigation case and when is it expected to be resolved?

The franchise fee of $20,000 is significantly below industry norms ($35,000-$75,000). How does the initial investment requirement compare when including equipment, real estate, working capital, and other startup costs?

Why is the 3-year turnover rate 0.0%? Are there contractual restrictions preventing unit exits, or does this reflect an unusually stable system?

Can you explain the 1 unit transfer in 2024? Was this approved by the franchisor, and what criteria do you use to evaluate transfer requests?

The system grew 57.1% in the past year (7 to 11 units). Are these new unit openings, re-acquisitions, or conversions from other brands? What is your projected growth rate?

What specific support and training does Signature Inn provide to franchisees? The support score of 68 falls below the typical range for hospitality franchises.

The agreement includes only a 5-day minimum cure period for defaults, with 8 non-curable defaults specified. Can you clarify which defaults are non-curable and cannot be remedied under any circumstances?

Personal guarantees are required from all owners with 20%+ ownership. Are there any limitations on the franchisor's ability to enforce personal guarantees, or can they pursue franchisee personal assets indefinitely?

The agreement includes a waiver of jury trials and class action participation with disputes resolved in federal court nearest to the franchisor. Have any of the 10 total litigation cases involved disputes over this clause itself?

What happens to my franchise at the end of the 20-year initial term? With zero renewal options listed, do I have any rights to continue operating, or would I need to renegotiate from scratch?

Since territory is non-exclusive with no encroachment protection, can the franchisor open or approve another Signature Inn location adjacent to or within my market area?

The Technology Fee is $155, but total ongoing fees and 5-year fee projections are not disclosed. What additional fees apply, and how frequently do fees increase?

Can you provide financial performance data (Item 19) showing average unit volumes, revenues, or profitability for operating franchisees? Why is this not currently disclosed?

Of the 10 litigation cases on record, how many involved franchisee complaints versus franchisor claims? What categories of disputes are most common?

What is your policy regarding transfer approval? The 9.1% transfer rate exceeds typical ranges—are these transfers being approved readily, or are there strict conditions?

The indemnification clause requires franchisees to indemnify the franchisor for all damages. Are there any carve-outs for the franchisor's gross negligence or willful misconduct?

With zero non-compete restrictions (0 years / 0 miles), can franchisees operate competing hotel brands before, during, or after their franchise term?

Given the discrepancy between Investment Costs score (89, above typical range) and Financial Performance score (40, without disclosed metrics), what is the actual return on investment franchisees should expect?