The Coffee Bean & Tea Leaf

What is the nature of the 1 pending litigation case against the franchisor, and what is the expected timeline for resolution?

Can you explain the 125% increase in unit closures from 2023 (4 units) to 2024 (9 units)? What specific factors contributed to this acceleration?

Of the 9 units closed in 2024 and 4 units closed in 2023, how many were due to franchisee financial struggles versus other reasons such as lease non-renewal or owner retirement?

Why has the system contracted by 4 units (2.99%) over the past year when the category average shows 0-31.82% growth? What is management's strategy to stabilize and grow unit count?

The monthly technology fee of $1,500 is 3-14 times higher than typical coffee franchise technology fees. What specific technology and services justify this premium, and is this fee negotiable?

Given the significantly below-typical franchise fee of $25,000 versus the category average of $35,000-$45,000, what support, training, or operational assistance might new franchisees receive less of compared to competitors?

Can you provide detail on all 4 litigation cases in the franchisor's history, including the nature of claims, outcomes, and whether any relate to recurring operational or contractual issues?

What are the 5 renewal conditions precedent that franchisees must fulfill to renew, and what is the estimated cost of the mandatory remodel requirement mentioned in the renewal clause?

The System Health score of 38/100 is significantly below the typical range of 50-75. What specific metrics or operational issues drive this low score, and what is the franchisor doing to improve?

Can you clarify what factors contributed to the 1 pending litigation case, and provide a timeline for when resolution is expected?

Of the 13 non-curable defaults listed in the termination clause, how frequently do franchisees receive formal written notice of defaults, and what percentage are ultimately resolved?

Since termination rate is 0% while exit rate is 6.9%, are all exiting franchisees either choosing non-renewal or transferring their units? Are there barriers preventing the franchisor from terminating underperforming locations?

The top quartile sales average $2,420,517 but median sales are $1,155,607—a significant gap. What specific factors distinguish high-performing units, and what support exists for units below median?

What percentage of the franchise fee ($25,000) goes toward initial training, technology setup, inventory, and site selection versus other costs?

Are the 6 units that 'ceased other' in 2024 classified differently from closed units for a specific reason, and what does 'ceased other' typically encompass?

Can you explain why the Transfer Fee of $5,000 (50% below category average) is set so low relative to competitor franchise systems?

The Non-Compete clause specifies 2 years and 10 miles—are these terms fixed or negotiable based on franchisee circumstances or location type?

Given the mandatory binding arbitration in Los Angeles, California, what is the typical cost and timeline for franchisees involved in disputes, and are there provisions for remote arbitration?

The Risk Factors score of 48 is significantly below the typical range of 62-80. What specific operational or financial risks does the franchisor consider most material for prospective franchisees?

Can you provide an Item 19 breakdown showing sales ranges, percentages of units achieving various revenue levels, and how many units reported data for the financial performance claims?