Smash My Trash

What were the specific reasons for the 56 unit closures in 2023, and was this related to market conditions, operational issues, or franchisor actions?

Of the 4 pending litigation cases, what are the general nature and status of each, and do they represent systemic issues or isolated incidents?

Why is the monthly technology fee of $700 significantly higher than the industry typical range of $100-$500, and what specific services or systems does this cover?

Can you provide details on the 6 cases where the franchisor was named as defendant, including their outcomes or current status and whether they relate to franchisee disputes or other matters?

What are the specific renewal conditions that must be met to extend the franchise beyond the initial 10-year term?

The transfer rate of 10.0% is notably high—what is driving franchisees to transfer their units rather than renew or continue operating?

Given the termination rate of 4.6%, what are the most common reasons franchisees are being terminated, and are there early warning signs you communicate?

How is the mandatory equipment growth requirement (additional trucks when achieving $35,000+ monthly sales per truck) enforced, and what happens if franchisees cannot or will not comply?

Can you clarify the 17 non-curable defaults outlined in the franchise agreement and provide examples of actions that would trigger immediate termination?

The non-compete restriction extends 3 years after exit—can you confirm this applies to all franchisees regardless of termination type, and has this been enforced?

What percentage of the 2023 closures involved franchisees who subsequently opened competing businesses in their former territories?

Regarding the dispute resolution clause requiring arbitration within 10 miles of the franchisor's principal business, what is the franchisor's principal place of business and what are typical arbitration costs?

Can you provide a breakdown of the 39 transfers in 2023 (vs. 15 in 2022 and 52 in 2024)—were these approved transfers to new operators or sales to related parties?

The franchise agreement requires purchases from 5 designated or approved supplier categories—can franchisees request alternative suppliers, and what is the approval process?

Have any litigation cases involved claims related to the technology fee, supplier requirements, or mandatory growth obligations?

What support or resources does the franchisor provide to franchisees who are struggling to meet the $35,000 monthly sales threshold that triggers mandatory equipment investment?

Given the change from 546 units 3 years ago to 520 currently, what is the franchisor's growth strategy and targets for the next 3-5 years?

Can you clarify the personal guarantee requirement and whether it applies retroactively if franchise agreement terms change during the term?