The Tutoring Center

Can you provide a breakdown of the 10 unit closures in 2024? How many were due to financial underperformance, market conditions, franchisee relocation, or other factors?

Given the 11.9% closure rate significantly exceeds the typical 0.0%-4.98% for this category, what specific challenges are franchisees facing that are driving these closures?

Why has the franchise fee been set at $32,000, substantially below the typical $40,000-$55,000 range for similar franchises? Is this intentionally discounted to attract franchisees?

The system has declined from 87 units to 75 units over 3 years. What is the franchisor's growth strategy, and do you have projections for unit expansion or stabilization?

What support or interventions does the franchisor provide to struggling franchisees to prevent closures? How many franchisees received operational support in the past 12 months?

The 7.1% transfer rate exceeds the typical range. Are these transfers primarily due to franchisees exiting the system, or are units being successfully transferred to new operators?

Item 19 financial data is available but specific sales figures are not provided. Can you share median and average unit volumes for active franchisees, and how many units reported financial data?

The System Health score of 13/100 is significantly below the typical 50.0%-75.0% range. What specific operational or compliance issues are driving this low score?

Your Territory score of 60/100 falls below the typical 75.0%-96.25% range, despite offering protected territory with encroachment protections. What territorial disputes or encroachment issues have occurred?

The franchise agreement requires binding arbitration in Los Angeles County with waivers for jury trials and class actions. How many disputes in the past 3 years have been resolved through this arbitration process?

Franchisees must purchase equipment, materials, signage, and software from you or approved suppliers. What is the total annual cost of these mandatory purchases for a typical center, and can franchisees source these items elsewhere?

The renewal process requires 8 specified conditions and a $5,000 fee. Can you provide the complete list of conditions and clarify whether franchisees who fail to meet conditions will be denied renewal or must close?

Personal guarantees may be required from all franchisee owners. In what percentage of franchise agreements are personal guarantees currently required, and are there circumstances where they can be waived?

The non-compete clause is 2 years within 10 miles. How has this been enforced in the past? Are there examples of franchisees who attempted to open competing centers and were sued?

With zero franchisor-initiated terminations but significant voluntary closures, are you concerned about the franchise model's viability? What is your explanation for the declining unit count?

Can you provide the names and contact information for at least 10 franchisees who have closed units in the past 2 years so I can discuss their experience and reasons for exit?

The 6.0% non-renewal rate suggests franchisees are choosing not to renew. What percentage of franchisees renew at the end of their initial 10-year term?

What is the average unit volume and profitability threshold that franchisees must maintain to remain viable? How do current struggling units compare to this threshold?

The Risk Factors score of 60/100 falls below the typical 70.25%-80.0% range. What specific operational, financial, or market risks does the franchisor identify for franchisees?

Are there any class action lawsuits or regulatory complaints pending against the franchisor that are not reflected in the litigation data?