Slumberland

What is the specific breakdown of the 9 renewal conditions required to renew your franchise at the end of the 15-year initial term?

The franchise fee of $55,000 is significantly higher than the typical range for retail franchises ($25,000-$40,000). What additional support, training, or services justify this premium fee?

The monthly technology fee of $850 is nearly double the typical technology fee for retail franchises ($100-$479). What specific technology systems and services are included in this fee, and is it subject to annual increases?

Given that your royalty rate is 3.0%, below the typical 4.38-6.0% range, are there any additional fees or performance-based charges that could increase your total ongoing costs?

Can you provide specific details about the 4 unit closures in 2024 and what operational or market factors contributed to these exits?

The non-compete agreement restricts competition for only 1 year within 10 miles. Why is this shorter than the typical 2-year restriction for retail franchises, and what protections exist if a former franchisee opens a competing store after this period?

What is the franchisor's policy regarding minimum performance requirements, and what specific metrics or sales thresholds must be met to maintain the franchise beyond the 24-month period mentioned in the agreement?

The franchise agreement specifies that disputes must be resolved through binding arbitration in St. Paul, Minnesota. What are the estimated costs for arbitration, and has any franchisee arbitration occurred in the past 5 years?

Can you clarify the personal guarantee requirement mentioned in the agreement and whether both spouses must guarantee all franchise obligations regardless of who is the primary operator?

What is the 'greater of' formula for minimum monthly fees—can you provide an example of how this is calculated and what the typical monthly minimum fee is for current franchisees?

Given the exceptionally high median gross sales of $2.9M compared to typical retail franchises at $430K-$1.1M, what percentage of your franchisees achieve sales in this range, and what factors drive this performance?

Are there any transfer restrictions or franchisor approval requirements beyond the $10,000 transfer fee when selling your franchise?

The franchise agreement has a 15-day to 30-day cure period for termination defaults. Can you provide a complete list of the 8 non-curable defaults that result in immediate termination?

What is the franchisor's position on encroachment, and while your territory is protected, can the franchisor place new units nearby or online channels that compete with your territory?

How many franchisees have renewed their franchises, and what percentage of franchisees elected not to renew at the end of their initial term?

The renewal fee is $5,000 in addition to required capital improvements described as 'reasonable.' What is the typical cost range for these required capital improvements upon renewal?

Can you provide the litigation history dating back more than 3 years, and specifically any class action lawsuits or regulatory complaints involving franchisees?

What is the franchisor's track record for supporting franchisees during economic downturns, and have there been any waivers or modifications to royalty rates or fees during challenging periods?

The financial data shows consistently strong unit sales. What operational support, marketing assistance, or technology tools does the franchisor provide to help franchisees achieve and maintain these sales levels?