TCBY

Can the franchisor provide detailed reasons for the 23 closures in 2024 and explain why closure rates have more than tripled since 2022?

What specific support or operational changes has the franchisor implemented to address the declining sales performance (median $397,160 vs. typical $463,309) and high closure rates?

Given that gross sales are below typical ranges across all quartiles, what is the average unit profitability after accounting for the 6% royalty, 3% ad fund, and $100 technology fee?

Can you provide an Item 19 financial performance statement that breaks down operating costs, labor, and net profits by unit performance tier?

The system lost 43 units in the past year alone. What is the franchisor's growth strategy to stabilize or grow the franchise system?

Why does the Territory score of 50 fall below the typical 60.0-100.0 range, and what encroachment protections exist given the non-exclusive territory policy?

The System Health score of 11 is far below the typical 50.0-75.0 range. What metrics contribute to this low score, and what is the franchisor's remediation plan?

Can you explain the Business Interruption or Force Majeure clauses and whether they were invoked during recent closures?

Given the 15.9% closure rate (above typical 7.25%), what is the franchisor's franchisee support program designed to prevent closures and improve unit profitability?

What is included in the $100 annual technology fee, and how does the franchisor deploy technology to improve unit sales and operational efficiency?

The renewal fee is stated as 7% of the then-current initial franchise fee. If the initial franchise fee increases, will this proportionally increase the renewal cost for existing franchisees?

Can you provide a breakdown of the 43 units lost in 2024 by reason (owner retirement, relocation, voluntary closure, underperformance, etc.)?

The Risk Factors score of 52 is below typical 65.0-80.0. What specific risk factors contributed to this low score and how are they being mitigated?

Given the binding arbitration requirement in Delaware with a 1-year filing deadline, has the franchisor had any disputes that were resolved through arbitration, and what were the outcomes?

The franchisor requires personal guarantees from all entity owners and their spouses. How has this been enforced in cases of unit closure or default?

Can you provide contact information for 10-15 franchisees currently operating units, broken down by performance tier (top, middle, bottom quartile) so I can independently verify sales and profitability claims?

What are the specific 9 conditions for renewal of the franchise agreement, and how many franchisees have successfully renewed versus chosen not to renew in the past 3 years?

The non-compete is 2 years/10 miles. Has the franchisor enforced this restriction against departed franchisees, and are there documented cases of disputes over non-compete violations?

What is the average unit investment (including real estate, equipment, working capital) and how many months of operating losses can a typical franchisee sustain before closure becomes necessary?

Given the 0% termination rate, can you explain the franchisor's policy on when and under what circumstances it would terminate a franchise agreement for underperformance or non-compliance?