What specific circumstances led to the 9 unit closures in 2024, and do those circumstances persist in the current market?
#1
Of the 6 litigation cases filed against the franchisor, what were the primary claims and what were the outcomes or current status of each?
#2
Has the franchisor implemented any operational changes or support initiatives in response to the increased closure rate observed in 2024?
#3
The termination clause specifies 10 non-curable defaults—can you provide specific examples of how each has been applied in practice?
#4
Given the 2-year/20-mile non-compete restriction, what specific business activities are prohibited post-termination and how broadly is 'system locations' defined?
#5
The renewal fee is stated as 25% of the then-current franchise fee—can you clarify the calculation methodology and whether additional capital improvements are typically required at renewal?
#6
What support or training does the franchisor provide to help franchisees during the critical first 2-3 years when most exits appear to occur?
#7
How does the franchisor handle territory disputes or claims of encroachment, and are there documented cases of dispute resolution outcomes?
#8
Can you provide the financial performance and closure rates specifically for locations similar in demographics and market conditions to your intended territory?
#9
The agreement requires executing a new agreement at renewal—what material terms typically change between the initial and renewal agreements?
#10
What is the typical customer acquisition cost and average customer lifetime value for an established SuperGlass unit compared to first-year units?
#11
How many of the 6 litigation cases involved franchisee disputes versus third-party claims (e.g., customer injuries, supplier disputes)?
#12
Given the low termination rate of 1.7%, does the franchisor provide performance improvement plans before termination, and what metrics trigger such intervention?
#13
The personal guarantee clause requires all shareholders to guarantee obligations—are there any limitations on this guarantee duration or amount?
#14
Can you provide documentation on the 8 renewal conditions mentioned in the renewal clause, and what percentage of franchisees successfully renew versus terminate?
#15
What specific business model changes or market factors do you attribute to the stable unit count from 2022-2023 followed by the contraction in 2024?
#16
Are there any pending or threatened litigation cases not yet reflected in the 3-year count, and what is the nature of those disputes?
#17
How is the $30,000 franchise fee allocated (training, territory development, technology setup), and what happens if you require additional training beyond the standard package?
#18
What benchmarks or key performance indicators would trigger franchisor intervention or support in a franchisee's first 24 months of operation?
#19