Surf City Squeeze

The ad fund rate of 4.0% exceeds the typical range of 1.5-3.0% for food and beverage franchises. What specific programs and initiatives does this fund support, and how is spending allocated across different channels?

What were the circumstances and details of the 14 litigation cases on record? Specifically, what were the 2 cases where the franchisor was plaintiff and the 3 cases where the franchisor was defendant?

The system has declined from 70 units to 63 units over 3 years with a negative CAGR of -3.45%. What is the franchisor's stated strategy to reverse this decline, and what specific support or incentives are planned?

Of the 13 units that closed between 2022-2024, what were the primary reasons cited by franchisees? How many cited profitability challenges versus other factors?

The transfer rate of 6.3% exceeds the typical range. Why are franchisees transferring ownership, and does the franchisor approve all transfers or have any transfers been rejected?

What is the non-renewal rate of 3.1% attributed to? Are franchisees choosing not to renew due to profitability concerns, or are there other reasons?

Since you have no Item 19 financial performance disclosure, what average unit volumes, profit margins, or financial benchmarks can you provide for successful locations?

The franchise agreement allows for social media policy violations to require a cure in less than 24 hours while other defaults allow 14 days. What specific social media violations trigger this accelerated termination process?

The renewal clause limits franchisees to a single 5-year renewal with no further renewal rights. Can this term be negotiated, and what happens to a location if renewal is not approved?

All shareholders, members, owners and their spouses must execute personal guarantees. Are there any circumstances under which personal guarantees can be limited or removed?

Territory is non-exclusive with no encroachment protection. How many Surf City Squeeze locations currently exist within close proximity to each other, and what is the franchisor's policy on adding new locations near existing franchisees?

What mediation and arbitration costs should franchisees expect, and who bears these costs in disputes with the franchisor?

Are there any ongoing lawsuits or pending litigation that are not reflected in the 3-year litigation data?

What percentage of closed units cited inadequate franchisor support or system issues versus market/economic factors in their exit interviews?

The System Health score is 47, below the typical range of 50-75. What specific areas does the franchisor acknowledge need improvement in terms of operations, training, or support?

Of the 2 cases where the franchisor was plaintiff, what remedies did the franchisor pursue and what were the outcomes?

What is the typical payback period for franchisees at currently operating locations, and how many units are profitable?

Are there any proposed changes to the franchise agreement, fee structure, or territorial policies planned for 2025?