The Bunny Hive

The advertising fund rate of 3.0% exceeds typical rates for childcare franchises. How is this fund specifically allocated, and can you provide a detailed breakdown of advertising expenditures and return on investment from the past 2 years?

The system has grown from 1 unit to 16 units in 3 years at a 151.98% CAGR. What percentage of this growth comes from new franchisees versus company-owned units, and what is the projected unit growth for the next 3-5 years?

Your initial contract term of 7 years is notably shorter than the 10-year typical range. What is the rationale for this shorter initial term, and how does renewal success currently look for franchisees approaching their first renewal?

Can you explain why the total potential contract term of 22 years exceeds the typical 15-20 year range? What conditions must be met to exercise all 3 renewal options?

The franchise agreement includes 16 non-curable defaults allowing immediate termination. Can you provide specific examples of these non-curable defaults and explain what operational breaches trigger immediate termination?

Personal guarantees are required from all owners and spouses. In how many franchise relationships have personal guarantees been enforced, and what were the circumstances?

The agreement mandates binding arbitration with class action waivers. How many disputes have been resolved through arbitration in the past 3 years, and what was the typical outcome for franchisees?

Franchisees must indemnify the franchisor against losses from activities under the franchise. Can you provide examples of indemnification claims made against franchisees and the average cost of such claims?

The franchisor controls site selection, signage, equipment, supplies, technology, and advertising through approved suppliers. What is the estimated cost impact of required approved suppliers compared to using alternative vendors?

Zero litigation cases in 3 years is notable. Can you confirm whether franchisees have filed complaints with state regulatory bodies or filed disputes outside the arbitration clause?

Only 3 units existed 1 year ago versus 16 currently. How many of the 13 new units in the past year came from multi-unit franchisees expanding, versus new franchise agreements?

What is your current franchisee satisfaction rate and retention rate, especially given the rapid expansion? Do you have any data from franchisee surveys or feedback?

The technology fee is $334 annually. What does this cover, and how often does the technology platform require paid upgrades or additional software licensing fees?

Can you provide the average payback period and break-even timeline based on Item 19 data for franchisees operating in different market conditions?

Given the 2-year, 25-mile non-compete clause, what support does the franchisor provide to franchisees exiting the system to transition or relocate?

The $10,000 transfer fee applies to unit transfers. Are there any additional costs, franchisor approval fees, or training requirements associated with unit transfers?

With 0% termination rate historically, has the franchisor ever terminated a franchisee agreement, and if so, what were the grounds?

Can you detail the support and training provided to new franchisees, including initial training duration, ongoing coaching frequency, and technology support availability?