SUBURBAN STUDIOS

What are the specific reasons for the 4 pending litigation cases, and which franchisees or units are involved in these disputes?

The royalty rate of 6.0% is higher than the typical 5.0-5.5% range for this category—what specific services or support justify this higher rate?

Can you provide a detailed breakdown of the 8 closures in 2024, including which were franchisee-initiated versus performance-based, and what operational challenges led to these exits?

The transfer rate of 8.3% is significantly above the typical range of 0.0-5.45%—is this driven by franchisees seeking to exit, or are transfers primarily internal ownership changes and management continuations?

Your support and training score of 90 is above the typical range for this category—what specific training, technology, or operational support does this include, and are all franchisees required to utilize it?

Since there are no renewal options after the initial 20-year term, what happens to franchisees at the end of their initial term, and is there a process to renegotiate or transition the franchise?

The franchise agreement provides no renewal rights and a $40,000 renewal/transfer fee—are franchisees informed of this at the point of franchise purchase, and what recourse do they have if they wish to continue operations?

Can you explain the Investment Costs score of 0 and provide a complete breakdown of all upfront and ongoing investment requirements not reflected in the franchise fee?

What specific cure periods and remedies are provided for the 8 categories of curable defaults, and how many franchisees have been granted cure periods in the past 3 years?

Of the 3 cases where the franchisor was defendant, what were the primary allegations, and have any resulted in settlements, judgments, or policy changes?

The binding arbitration clause specifies Maryland as the venue—how does this impact franchisees who operate in other states, and what is the typical cost of arbitration?

Can you provide historical data on how many franchisees chose not to renew at the end of their term, and what percentage of franchisees actually complete the full 20-year initial term?

The non-compete clause specifies 0 years and 0 miles post-termination—does this mean former franchisees can immediately open competing hospitality businesses in the same market?

What personal guarantee or liability insurance requirements are imposed on individual franchise owners, and what are the typical limits and costs?

Of the 9 transfers in 2024, how many were to existing franchisees expanding their portfolio versus new entrepreneurs, and does the franchisor have approval rights over new owners?

The 3-year unit growth rate of 13.3% significantly exceeds the typical range—is this growth rate sustainable, and what percentage of growth comes from organic new unit development versus transfers?

Can you provide Item 19 financial performance data showing average unit volumes, profitability ranges, and how many units exceeded or underperformed their projections?

With 4 pending litigation cases, what is the franchisor's litigation cost reserve, and how might ongoing legal disputes impact the franchise system's stability and resources?