Spitz

Can you provide details on the 1 unit terminated in 2024, including the specific reasons for termination and whether it involved disputes over compliance with operational requirements?

The termination rate of 4.0% is above the typical range for fast casual restaurants. How many additional terminations or non-renewals do you anticipate in the next 12-24 months?

Given the franchisor can terminate units for 17 different scenarios with only 5-10 days to cure, what are the most common default scenarios you've encountered among existing franchisees?

Can you explain the circumstances of the 1 unit closure in 2024 and whether it was franchisor-initiated or voluntary?

How do you support existing franchisees in the 10-hour daily, 7-day weekly operational requirement, given that this is more intensive than many competitors?

What is the experience of current franchisees regarding the requirement to purchase all Spitz branded and proprietary products from approved suppliers only? Are there cost control mechanisms or price caps?

Can you provide a breakdown of the financial performance data (Item 19) by unit age and location type to help assess realistic revenue expectations for new units?

The franchise has grown 25.0% in the past year. What percentage of this growth is from new franchise sales versus expansion of existing franchisees, and do you have plans to slow or accelerate expansion?

What remodeling or renovation investments are typically required at renewal (per the renewal conditions), and what is the average cost?

Can you clarify the scope of the 2-year, 20-mile non-compete for former franchisees? Does this restrict them from working as employees at similar restaurants, or only from operating competitive businesses?

Have any franchisees requested territorial expansion or multi-unit opportunities, and how does the franchisor handle such requests?

What support and training are provided to help franchisees meet the 10-hour daily operational requirement and manage associated labor costs?

Are there any pending disputes, regulatory investigations, or complaints from franchisees that are not yet reflected in litigation data?

How many of the 25 current units are owned by multi-unit franchisees versus single-unit operators?

What is the average unit volume (AUV) by year of operation, and how long does it typically take a new unit to reach median sales of $1.7M?

Can you provide references from at least 5-10 franchisees who have owned units for 3+ years, including at least 2-3 who have renewed or are approaching renewal?

The personal guarantee requires spouses to provide joint and several liability. Does this apply to all owners regardless of marital status or ownership structure?

What happens to the franchise if the franchisor is acquired or changes ownership? Are there protections for existing franchisees in the agreement?