Snapology

Can you provide details on the 6 litigation cases involving the franchisor over the past 3 years, including the nature of disputes, outcomes, and whether they relate to franchise operations or other matters?

The closure rate has increased to 14 units in 2024, up from 7 in 2023. What factors have driven this acceleration in unit closures?

What specific challenges are franchisees reporting that lead to voluntary closures? Are there recurring business model issues or market saturation problems?

Median gross sales are $100,088, significantly below the typical range for childcare franchises. Can you explain what factors contribute to this lower sales performance and provide context on unit profitability?

The initial term is 5 years compared to the typical 10-year term in this category. Why is the term length shorter, and does this affect franchisor commitment to franchisee success?

With 33 termination causes listed in the agreement compared to a typical range of 15-22, can you walk through which causes are most commonly invoked and provide examples of recent terminations?

The agreement specifies cure periods as short as 5 days for certain defaults. How realistic are these timeframes for franchisees to address issues, and have disputes arisen over inadequate cure periods?

Can you clarify the personal guarantee requirement that extends to owners holding more than 10% equity? Does this apply to spouses, and what scenarios have triggered personal liability claims?

Renewal costs require payment of 15% of then-current franchise fee plus $6,000 renewal fee. How many franchisees have renewed versus not renewed at the end of their initial term?

What training and ongoing support is provided to help franchisees achieve higher sales performance, given that current sales averages are well below category norms?

The transfer fee is $20,000. How frequently do franchisees attempt transfers, and what approval criteria does the franchisor apply?

Are the 2 cases initiated by the franchisor still active, and if resolved, what were the outcomes and remedies sought?

Given the 2-year, 25-mile non-compete clause, how does the franchisor enforce this, and have there been disputes with former franchisees opening competing businesses?

Can you provide a breakdown of the 14 closures in 2024 by franchisee type (original franchisees vs. transfers) and geographic region to identify patterns?

How does the franchisee support model compare to other brands in the early childhood education space, particularly given the Support & Training score of 77?

Are there documented instances where encroachment protection policies were violated by the franchisor opening company-owned locations or awarding territories too close to existing franchisees?

What is the average tenure of currently operating units, and how many of the original franchisees from the system's inception are still operating?

Can you provide references from at least 10 franchisees currently operating for 3+ years and specifically ask them about support quality and whether they have considered exiting?