Sugaring NYC

Can you provide details on the 1 pending litigation case, including the nature of the dispute, parties involved, and expected resolution timeline?

Why did franchisor-initiated terminations increase from 4 in 2023 to 9 in 2024? What specific compliance or operational issues led to these terminations?

What conditions must be satisfied to renew a franchise agreement after the initial 10-year term, and how often do franchisees successfully renew versus exit at term end?

Given the royalty rate of 5.0% is below the typical 6.0-7.0% range for health and beauty franchises, are there plans to increase royalties, or is the lower rate permanent?

Why is the total potential contract term 10 years when the industry typical is 15.5-20.0 years? Does this shorter term limit franchisee ability to build long-term value?

Can you explain the significant gap between gross unit growth (15 units added) and the number of closures and terminations (20 total exits in 2024)? How many new units opened to net this growth?

What is the financial performance of units opened in 2022 versus 2023 versus 2024? Are newer units underperforming, contributing to higher closure rates?

The non-compete restricts competing waxing or hair removal businesses for 2 years within 25 miles. How is this enforced, and have there been disputes or litigation over non-compete violations?

Why does the franchise agreement require mandatory purchase of furniture, fixtures, equipment, inventory, and uniforms from designated suppliers with franchisor-controlled pricing? What is the average markup on these required purchases?

Given that no transfers have occurred in the past year (0.0% transfer rate), what challenges do franchisees face when attempting to sell their units? Are units difficult to sell?

Can you provide Item 19 financial performance data showing average unit volumes, costs, and profitability by location or franchisee? Why is Item 19 not included in the FDD?

What specific capital expenditures are required to renew a franchise after the initial 10-year term, and what is the estimated cost?

How many of the 2024 terminations were initiated by the franchisor for cause versus voluntary closures by franchisees? What were the primary causes?

What is the average unit volume (AUV) and typical payback period for new franchisees? How do these metrics compare to the health and beauty industry average?

The binding arbitration clause requires disputes to be resolved at the franchisor's headquarters location. How many of the 2 litigation cases involved disputes between franchisor and franchisees, and what were the outcomes?

Are there geographic markets where unit performance and retention are significantly higher or lower? Do you have data on turnover rates by location or region?

What support and training are provided during the initial term and upon renewal? Are training requirements part of the renewal conditions?

Can you clarify the unlimited guaranty requirement for owners with 5% or greater interest? What specific liabilities are franchisees personally guaranteeing?

How often have franchisees successfully negotiated modifications to the non-compete radius or duration before signing? Is the 2-year / 25-mile restriction flexible?

Given the 1 pending litigation case, can you confirm there are no material disputes, regulatory investigations, or franchise-related complaints filed with state regulatory bodies?