The Tox

Can you provide detailed reasons why 2 units closed in 2024? Were these driven by unit-level performance, franchisee decisions to exit, or external market factors?

What is the average unit volume for the bottom quartile of performers, and are there specific markets or unit types performing below median sales levels?

Your 1-year turnover rate of 14.3% is more than double the typical rate for Health & Beauty franchises. What support or remediation strategies are in place for struggling units to reduce future closures?

How is the $25,000 transfer fee justified compared to the typical $7,500-$20,000 range? Are there circumstances where this fee can be negotiated or waived?

The royalty rate of 8.0% exceeds the typical 6.0-7.0% range. What additional services, support, or benefits justify this higher rate compared to comparable franchises?

Can you clarify what the $400 annual technology fee covers and whether this is indexed for inflation or subject to annual increases?

Are there any circumstances under which the $1,000 monthly minimum royalty could be adjusted based on lower sales performance or seasonal fluctuations?

Given the 5-day cure period for defaults, what are the most common breaches that trigger termination notices, and how many franchisees have successfully cured breaches in the past 3 years?

How does the 2-year, 25-mile non-compete restriction apply to multi-unit operators? Does it restrict them from opening new franchise locations within the territory?

Are franchisees required to personally guarantee the franchise agreement? Can this be limited to specific monetary obligations rather than unlimited scope?

What is included in the initial training and ongoing support provided by the franchisor, particularly given the Support & Training score of 90/100?

The territory is protected but not exclusive. Can you define what 'encroachment protection' means in practice, and are there limits on franchisor-owned units opening in franchisee territories?

What were the specific sales volumes and profitability metrics for the 2 units that closed in 2024, and did the franchisor provide remediation support before closure?

Are renewal fees or renegotiated terms contingent upon unit performance metrics or franchisor approval?

Can you provide a breakdown of the 3 new units added in 2024—when they opened, current sales performance, and whether they are owned by existing or new franchisees?

The Item 19 financial disclosure shows strong bottom-quartile sales relative to typical franchises. How many units contributed to this data set, and over what time period?

What is the franchisee attrition or non-renewal rate beyond the reported 0.0% in the past year? Has any franchisee chosen not to renew at the end of their initial term?

If a franchisee wishes to sell their unit, what is the franchisor's approval process and timeline, and are there any restrictions on who can purchase?

The late payment penalty of $100 plus 1.5% monthly interest appears substantial. Are there any grace periods or payment plan options available for franchisees experiencing temporary cash flow challenges?

Can you provide a list of current franchisees and contact information so prospective franchisees can conduct independent reference calls?