Smashburger

What were the specific circumstances and claims in the 2 litigation cases initiated against the franchisor in the past 3 years?

Of the 28 units that closed or ceased operations since 2022 (9 in 2022, 6 in 2023, 19 in 2024), what were the primary reasons cited by franchisees for closing?

The system lost 25 units over 3 years despite zero terminations—how many units during this period failed to renew their franchise agreement?

Given that territory is non-exclusive with no encroachment protection, how does the franchisor control the placement of new franchisees relative to existing locations?

What specific benchmarks or unit economics does the franchisor use to assess franchisee viability, and are these disclosed before signing?

Can you provide Item 19 or alternative financial performance data from existing franchisees, particularly regarding average unit volumes and profitability?

The 15-year initial term is longer than the typical 10-year standard for fast casual restaurants—what is the business rationale for this extended commitment?

For renewal, franchisees must pay 50% of the then-current franchise fee 180-270 days in advance—could you provide examples of how renewal fees have increased over past cycles?

The contract specifies 10 non-curable defaults resulting in immediate termination—what are examples of these violations, and how frequently are they enforced?

Regarding the 14 termination causes in the contract, which causes have actually been invoked against franchisees in the past 5 years?

All disputes must be resolved through binding arbitration within 50 miles of Denver, Colorado—what has been the typical cost and timeline for arbitrations filed by franchisees?

The franchisor designates approved suppliers for 10 categories—how are pricing, rebates, and supplier selection decisions made, and are any margins passed back to franchisees?

What is the franchisor's policy for supporting or assisting franchisees whose units underperform relative to system averages?

Given the 2-year, 5-mile non-compete clause, what restrictions apply to franchisees' ability to sell to other restaurant operators or manage alternative concepts post-exit?

How many franchisees have successfully completed a renewal cycle under the 50% franchise fee requirement, and what percentage of eligible franchisees chose not to renew?

Can you provide contact information for at least 15-20 current and 10 recent departed franchisees so I can understand their experiences with profitability and support?

What marketing support, advertising campaigns, and promotional strategies does the franchisor provide, and how is the 2.25% ad fund managed?

The System Health score of 25 is substantially below typical—what metrics drove this low score, and what initiatives is the franchisor undertaking to improve system performance?