Soccer Stars

Can you provide details on the 7 franchisor-initiated terminations in 2024? What were the primary causes cited in the franchise agreement?

What specific operational or financial performance issues led to the 8 unit closures in 2024? Are there common factors among the closed locations?

Given that average gross sales ($162,959) are significantly below the category typical range ($259,529-$1,130,314), what profitability metrics does Item 19 provide (net income, operating expenses, break-even timeline)?

Why does the system have only 12 termination causes listed when the typical range for this category is 15-22? What grounds for immediate termination are excluded?

Can you explain the rapid unit expansion from 16 units 3 years ago to 153 units today while maintaining a 4.8% termination rate? Is this driven by new franchisee recruitment or acquisition of existing centers?

How many of the 11 renewal conditions require capital expenditures or facility upgrades? What is the typical renewal fee ($7,500 stated) compared to the initial franchise fee ($49,500)?

What specific support or operational improvements has the franchisor implemented to address the rising termination and closure rates in 2024?

The franchise agreement requires exclusive purchasing from 5 categories of approved suppliers. Which categories are included, and does the franchisor or its affiliates supply any of these categories?

Under the cross-default provision, if a franchisee breaches one agreement with the franchisor, can that trigger termination of the franchise agreement?

All disputes must be arbitrated in New York. What are the estimated costs and timeline for arbitration, and are there provisions requiring the losing party to pay arbitration fees?

Why is the renewal conditions count (11) higher than typical (6-9)? What additional conditions were added, and how difficult are they to satisfy?

Are there any territorial encroachments or company-owned locations within existing franchisee territories? If so, how does the franchisor address conflicts?

What happens if a franchisee fails to meet performance benchmarks during the 10-year initial term but before renewal discussions? What cure periods apply?

Can you break down the 9 unit transfers in 2024? Were these voluntary sales to new operators or forced transitions?

The non-compete is 2 years within 10 miles. Does this apply only to competing childcare/education services or to the specific Soccer Stars curriculum model?

Personal guarantees are required from anyone owning 5% or greater interest, and spouses must guarantee all financial obligations. Are there any limitations on what obligations this covers?

What audit rights does the franchisor exercise, and what is the typical frequency and scope of audits?

How does the franchisor support units generating bottom-quartile sales ($68,029)? What turnaround assistance is available before termination is considered?

Are the 0 litigation cases over 3 years accurate? Have there been any disputes settled outside of formal litigation or arbitration?

What are the renewal fee payment terms, and can renewal fees be negotiated or waived based on performance?