Slick City

What is the business model and service offering for Slick City, and why are gross sales ($3.7-$4.9M median/average) significantly higher than typical for Sports & Recreation franchises?

With only 9 total units and 0 units closed or terminated to date, what assumptions underpin the financial projections in Item 19, and how representative are the current units of expected performance?

Can the franchisor explain the rationale for charging a $75,000 franchise fee when typical Sports & Recreation franchises charge $39,500-$55,000?

Why is the transfer fee set at $5,000 when industry standard for this category is $8,937.50-$18,437.50? What does this transfer fee cover?

Given the 200% unit growth in the past year, what is the franchisor's growth strategy for the next 3-5 years, and are there any planned market saturation thresholds or territory protections?

The non-compete clause restricts operation within 5 miles for 2 years post-exit. Why is this narrower than the typical 10-25 mile radius for this category, and what protection does this provide franchisees against competition?

With zero litigation history, has the franchisor had any disputes, complaints, or regulatory actions that did not result in formal litigation? Please provide details on any informal resolutions.

What is the franchisee retention strategy given that the system is young (2 units 3 years ago)? What support systems are in place to maintain the current 0% turnover rate?

The agreement requires mandatory arbitration with class action waiver and requires all owners and spouses to provide unlimited personal guarantees. Can you explain the rationale for this broad personal guarantee structure?

Regarding the operational control clause requiring all inputs from franchisor-designated sources, what is the typical markup or margin the franchisor earns on these required purchases, and how are pricing decisions made?

Item 19 shows financial data for current units. How many of the 9 current units are fully mature (operating for 2+ years), and what is the financial performance breakdown by unit age?

What happens if a franchisee cannot afford or is unable to purchase required inputs from franchisor-designated vendors? Are there alternative approval processes?

Can the franchisor provide a detailed breakdown of the $874 annual technology fee? What specific technology and support does this include?

With a 10-year initial term and 2 renewal options, what are the terms for renewal? Is there a renewal fee, and can the franchisor unilaterally change terms at renewal?

Given that the transfer fee of $5,000 is below industry standard, what restrictions apply to transfers? Can a franchisee freely transfer to a qualified buyer, or does the franchisor have approval rights?

The system is growing rapidly but remains very small (9 units). What is the minimum number of units needed to sustain the franchisor's corporate operations, and what happens if growth stalls?

Are there any territorial disputes or encroachment concerns among current franchisees despite exclusive territory rights being granted?

Has the franchisor conducted any market studies or feasibility analyses for new territories, and what market conditions are considered most favorable for new unit development?

What training, ongoing support, and marketing assistance does the $75,000 franchise fee and ongoing fees cover? Can you provide a detailed breakdown?

Given zero exit activity to date, can the franchisor identify any franchisees who have expressed dissatisfaction or considered exit, and what measures were taken to address their concerns?