The Paterson Center

The technology fee of $18,000 annually is approximately 36-180 times higher than typical for this category. What specific services and technology platform justify this fee, and how is this fee calculated or adjusted?

How do you explain the absence of royalty fees (typical: 6-10%) and advertising fund contributions (typical: 1-2.75%)? Are franchisees responsible for any other recurring payments not listed in the fee structure?

With 20 unit transfers out of 98 current units in the past year (20.4% transfer rate), what is driving such high transfer activity? Are these primarily sales to new operators, financial distress situations, or other circumstances?

The system grew from 9 units 3 years ago to 98 units currently (121.7% CAGR). What was the primary growth driver—new franchisee recruitment, reacquisition of former units, or conversion of existing businesses?

Three units closed in the past year with no reported terminations. What were the reasons for these 3 closures, and were franchisees provided with exit support or buyback options?

The initial contract term is only 3 years with 3 renewal options of 3 years each, compared to typical 5-10 year initial terms in this category. What is the rationale for the shorter initial commitment, and what are the renewal conditions and fees?

You offer no territorial exclusivity or encroachment protection. How do you define franchisee territory, and what prevents the franchisor or other franchisees from directly competing within a franchisee's service area?

There is no non-compete clause (0 years / 0 miles) compared to the typical 2-year / 10-50 mile range. If a franchisee exits, can they immediately open a competing business in the same area?

One litigation case was initiated against the franchisor in the past 3 years. What was the nature of this case, its current status, and what was the outcome or resolution?

Financial performance data (Item 19) is not provided. Will you provide historical earnings or financial performance data from existing franchisees for verification?

With the contract term limited to 3 years total potential term, what are your average franchisee tenure and renewal rate? How many franchisees have renewed versus exited after their initial 3-year term?

The franchisor has sole discretion to require binding arbitration with mandatory mediation, waiving jury trial and class action rights. Under what circumstances would you initiate arbitration against a franchisee, and how frequently has this occurred?

How are renewal fees determined, and what conditions must a franchisee meet to renew? Can renewal be denied, and if so, on what grounds?

What support and training are included in the franchise package, and how do these vary for new franchisees versus existing operators considering renewal?

Are there examples of franchisees from the system you can reference for background checks and performance verification, given the high transfer rate and rapid growth?

How does the franchisor calculate or adjust the $18,000 annual technology fee if a franchisee experiences a significant decline in revenue or client base?

The termination causes count is 11, below the typical range of 12-21. What are the specific grounds for termination, and how frequently are these termination clauses invoked?

Given the rapid expansion from 9 to 98 units, what quality control measures exist to ensure consistency of service delivery and brand standards across the growing network?