Steel Coated Floors

What specific circumstances led to the 8 unit closures and 8 other ceases in 2023, and were there common factors among affected franchisees?

Can you provide details on the 3 pending litigation cases and explain the nature of disputes the franchisor has initiated as plaintiff?

Why does the franchise have 22 termination cause categories when the typical range for this category is 14-21, and how do these compare to industry standards?

Given the 47% annual turnover rate, what support systems or operational changes have been implemented to improve unit retention?

How do the 5 cases where the franchisor was defendant relate to product performance, franchisee disputes, or regulatory compliance?

What is the expected performance trajectory for the remaining 9 units, and are there plans to recruit new franchisees?

The bottom quartile sales of $688,765 exceed typical expectations - can you explain the sales distribution and viability of lower-performing units?

How many of the 6 total litigation cases involved disputes over the non-compete restriction, territory disputes, or other contractual matters?

What caused the significant gap between the 11.8% termination rate and the 47% closure rate in the past year, and how many were voluntary vs. franchisor-initiated exits?

Can you provide a detailed breakdown of the 6 litigation cases, including settlement amounts, current status, and any patterns in claims?

Given the territory is protected but not exclusive, how has the franchisor managed encroachment issues and have there been complaints about competing units?

What specific performance metrics or financial thresholds trigger the termination causes, and how consistently does the franchisor enforce these?

The 2-year, 25-mile non-compete is longer than some competitors - what is the rationale for this scope, and has it been challenged in litigation?

Can you provide audited financial statements or third-party verification of the average gross sales figure of $932,379?

How many of the 4 remaining units from 3 years ago are still operating, and what distinguishes the successful units from those that closed?

What specific encroachment protections are provided, and have there been disputes with franchisees over franchisor-operated or company-owned locations?

Has the franchisor made changes to the Item 19 financial performance representations, and why is there such variation in unit sales?

Are the 3 pending cases recent, and what is the estimated timeline and financial exposure for each?