The DRIPBaR

Can you provide details on the 1 pending litigation case, including the nature of the dispute, when it was filed, and the franchisor's position?

What were the specific circumstances leading to the 3 franchise terminations in 2024, and were these franchisor-initiated or franchisee-initiated?

Why did the termination rate increase from 0% in 2022-2023 to 2.8% in 2024, and what changes in franchise policies or operations may have contributed to this shift?

Given that median unit sales of $347,841 fall significantly below the category average, what factors explain the variance in unit performance, and what do top-performing units achieve in annual sales?

Can you clarify the difference between 'Ceased Other' (1 unit in 2023) and traditional closures or terminations in your exit data reporting?

The franchise fee of $55,000 exceeds typical category levels—what specific value or support justifies this premium pricing relative to competitors?

Your non-compete clause restricts franchisees from operating any business that 'primarily offers intravenous therapy' within 25 miles for 2 years—how broadly is 'primarily' interpreted, and has this been litigated?

The contract specifies 8 termination causes, which is below the typical 15-21 causes for comparable franchises. What are the specific grounds for termination, and do they include objective performance metrics or subjective standards?

Why is the territory marked as 'protected' but 'not exclusive,' and what encroachment protections exist if the franchisor opens competing units in your territory?

The transfer fee of $5,000 is significantly lower than the category average of $7,500-$20,000—does this reduced fee structure apply to franchisor-approved transfers, and are there limitations or conditions?

You require mandatory binding arbitration with class action waivers—can you explain the rationale for preventing franchisees from pursuing class actions against the franchisor?

The personal guarantee is described as having 'unlimited scope covering all obligations and covenants'—does this include guarantees for future lease obligations or only current franchise agreement terms?

With 3-year CAGR of 106.7%, what is your organic growth rate (new unit openings) versus growth through acquisitions or transfers, and is this growth rate sustainable?

The required $1,000,000 general liability insurance is standard, but does the franchisor require additional professional liability or malpractice coverage specific to IV therapy services?

Can you provide the total number of units reporting financial data in Item 19, and do the median/average sales figures represent all units or a subset?

Renewal requires meeting 8 specified conditions—can you detail these conditions, the likelihood of renewal denial based on non-compliance, and whether remedies exist before denial?

You mandate purchase from approved suppliers only across 5 categories—do you receive rebates or volume discounts from these suppliers, and are these passed to franchisees or retained by the franchisor?

The 'suggested retail price' control mechanism—how strictly is this enforced, and can franchisees set lower prices without franchisor approval or penalty?

Given the rapid expansion from 12 to 106 units in 3 years, what are your current expansion plans, and are there geographic territories you plan to saturate or develop?

What is the average time to profitability for a new DRIPBaR unit, and what percentage of franchisees achieve profitability within the first 3 years based on Item 19 data?