Tapville Social

What specific circumstances led to the 2 litigation cases filed against Tapville Social in the past 3 years, and what were the outcomes or settlements?

The transfer rate of 19.4% is notably high—what percentage of transfers are voluntary franchisee-initiated sales versus franchisor-facilitated transfers?

Given that 7 of 13 net units added in 2024 came from transfers, can you provide details on whether existing franchisees are selling due to profitability, underperformance, or other factors?

Sales performance (median $301K, average $375K) is substantially below casual dining norms ($1.1M-$2.6M)—are these mature unit sales, or do newer units consistently underperform expectations?

Can you explain the reasoning behind the 25-mile non-compete radius, which is significantly broader than the industry typical range of 7.5-15 miles?

Why does the franchise agreement specify only a 10-year total potential term compared to the typical 20-25 year range for casual dining, with no renewal options listed?

The agreement contains 25 termination causes (above the typical 15-20)—can you identify which are non-curable defaults and provide examples of how they've been applied?

Of the 2 cases with the franchisor as defendant, were any related to territory disputes, non-renewal denials, or termination disputes?

What is the average length of franchise ownership for units currently in the system, and how does the 2.8% termination rate compare to franchisor-initiated versus non-renewed exits?

The renewal fee is $8,900 (20% of the original franchise fee) with 9 specified renewal conditions—what are the most common reasons franchisees fail to meet renewal conditions?

Can you provide operating expense benchmarks and typical profit margins for units at different sales levels (e.g., $200K, $400K, $600K annual sales)?

Have any franchisees contested the 25-mile non-compete restriction, and how has it been enforced post-termination or non-renewal?

Why is there a 5-day cure period for payment defaults but 30 days for other defaults, and what triggers the non-curable default categories?

Given the rapid unit growth (44% CAGR), what is the franchisor's target unit count, and is growth being achieved primarily through new franchisees or transfers of existing locations?

Can you provide the geographic distribution of the 7 units transferred in 2024 and whether they were located in mature versus developing markets?

What specific support or operational improvements have been implemented to address the significant sales gap between Tapville Social units and casual dining category benchmarks?

How many of the 36 current units have been open for more than 2 years, and what are the sales ranges and exit rates stratified by unit age?

The litigation data mentions the franchisor was defendant in both cases—were these franchisee disputes, and if so, what were the primary dispute categories (contract interpretation, territory, termination, non-renewal)?

Does the franchise agreement contain any performance minimum requirements tied to sales targets, and if so, at what threshold would underperformance trigger termination?

For the 1 closure and 1 termination in 2024, can you provide the reasons and context—were they due to franchisee performance, market conditions, or franchisor action?