The Paterson Center, LLC

The system grew from 6 units to 77 units in 2 years (862.5% growth in 1 year). How many of the 69 new units added in 2023 are currently operational and profitable, and what is the average time-to-profitability for new franchisees?

Can you provide detailed background on the 1 litigation case initiated against the franchisor over the past 3 years—what was the claim, outcome, and has it been resolved?

Why is the royalty rate 2.0% when the typical range for this category is 6.0-10.0%, and are there any planned increases to the royalty structure?

The ad fund rate of 100 is substantially above the typical range of 1.0-2.75%. How is this fund allocated, and can you provide documentation of ad spend and ROI for franchisees in the past 12 months?

Given the 1-year initial term (typical range 5-10 years), what is your renewal rate for franchisees whose initial 1-year term expires, and what percentage of franchisees have chosen not to renew?

What are the 11 termination causes listed in the franchise agreement, and have any of these clauses been invoked in the past 3 years despite the reported 0% termination rate?

The franchise has zero non-compete restrictions (0 years / 0 miles). Are franchisees permitted to operate competing businesses in the same market, and does the franchisor have any non-solicitation or confidentiality protections?

Can you explain why the total potential term is limited to 1 year when the typical range for this category is 10-20 years? What happens after year 1 if a franchisee wishes to continue operating?

Item 19 (financial performance representations) is not provided. Can you share audited financial data or success rates for the franchisees added in 2023, broken down by quarters?

What specific training, ongoing support, and marketing assistance are provided given the very short 1-year contract term and the franchisor's apparent reliance on a high ad fund contribution from franchisees?

The dispute resolution clause requires binding arbitration and waives jury trial rights. Have any disputes been resolved through this arbitration process, and what were the outcomes?

With a transfer fee listed as N/A, what is the process and cost for a franchisee to sell their business, and does the franchisor have a right of first refusal?

Can you provide the contact information for at least 10 franchisees who have been in the system for the full 1-year term, including 5 who recently renewed their contracts?

How many of the 77 current units are company-owned versus franchisee-owned, and what is the franchisor's financial performance for company-owned locations?

Given the rapid growth from 8 to 77 units in 1 year, what vetting and onboarding processes are in place to ensure franchisee quality and operational readiness?

Is there a renewal fee, and under what circumstances might the franchisor decline to renew a franchisee's contract at the end of the 1-year term?

The contract includes a broad set of termination causes. Can you provide examples of how these have been applied in practice, and what is the average notice period given to franchisees?

What geographic markets are the 77 current units located in, and does the franchisor plan territorial expansion that could create encroachment for existing franchisees despite the non-exclusive territory designation?