Smoothie Factory + Kitchen

Can the franchisor provide detailed explanations for the 7 unit closures in 2024 and the 4 closures in 2022, including whether these were voluntary liquidations, franchisor terminations, or lack of renewal?

What specific operational or financial deficiencies led to the 5 franchisor terminations of franchisees in 2024, and what early warning indicators exist for franchisees to avoid termination?

Given the 33.3% termination rate and 13.3% non-renewal rate over the past year, what support systems exist to help struggling franchisees avoid termination or choose not to renew?

The franchisor has been plaintiff in 3 cases and defendant in 2 cases over 3 years. What were the nature and outcomes of these 5 cases, and do any relate to alleged breaches by the franchisor?

Why does the franchise require a non-compete radius of only 1 mile when the typical range for this category is 5-23.75 miles, and how does this limited protection affect franchisee territorial value?

The termination clause allows the franchisor to terminate immediately without opportunity to cure for 20 unspecified violations. What are these 20 violations that trigger immediate termination?

Can you provide the specific 9 conditions that must be satisfied for renewal, and what percentage of franchisees have successfully renewed their franchises to date?

Given that 5 units 'ceased other' in 2023 and 2 units 'ceased other' in 2024, what does 'ceased other' mean, and why are these exits excluded from the standard closure categories?

The franchisor must approve all 8 categories of goods and services from designated suppliers. What is the typical annual cost of required supplier purchases, and does the franchisor receive rebates or commissions from these suppliers?

Item 19 financial performance data is not provided. Will the franchisor disclose average unit volumes (AUV), gross sales ranges, or profitability data for operating units?

Of the 10 units that have exited (closed, terminated, or ceased other) since 2022, how many were in the same geographic market, and does the franchisor acknowledge any systemwide operational or market challenges?

The renewal fee is $7,500 (25% of the current $30,000 initial fee). If the initial franchise fee increases to $40,000 by renewal, will the renewal fee automatically increase to $10,000?

Personal guarantees are required from all owners extending through entire ownership chains. Are these guarantees limited to the initial term, or do they continue through renewals and apply to any business ownership transitions?

What is the current status of the 7 remaining franchise units—how long have they been operating, what are their approximate unit volumes, and how many are currently profitable?

Can the franchisor provide references from the 3 franchisees who transferred their units since 2022 to understand whether transfers were due to profitability, system support, or other factors?

The operational control clause grants the franchisor the right to establish maximum, minimum, or other pricing requirements for 8 product/service categories. What pricing controls currently exist, and have these pricing policies changed since franchise inception?

How many of the 5 litigation cases filed by the franchisor involved collection of unpaid royalties or fees versus operational disputes, and what were the outcomes?

Given the Risk Factors score of 0/100 (typical range: 65-80) and System Health score of 0/100 (typical range: 50-75), what specific factors contributed to these extremely low scores?

If a franchisee invests in opening a new unit today, what is the realistic payback timeline given that 46.7% of units exited in the past year, and can the franchisor identify common characteristics of units that have survived?

The transfer fee is $10,000 and renewal fee is $7,500. Are there additional hidden fees for approval, legal review, or training associated with transfers or renewals?