The UPS Store

What are the 8 pending litigation cases against the franchisor, and what are the key allegations or claims involved?

What is the expected timeline for resolution of these 8 pending cases, and could any result in changes to franchise agreement terms?

The royalty rate of 5% is below industry typical range of 6-10%. Is this rate guaranteed to remain unchanged, or could it be increased upon renewal?

Can you explain the rationale behind allowing 999 renewal options, each for 10 years, effectively locking franchisees into a 10,000-year contract structure?

What are the 13 specific renewal conditions, and how many of these are within the franchisor's unilateral control versus negotiable?

Unit closures have increased from 33 in 2021 to 61 in 2024. What factors are driving this upward trend in closures?

Given the $201.50 monthly technology fee, what specific systems and tools does this cover, and how is this fee structured to increase or change over time?

Can franchisees negotiate the $6,000 transfer fee, or is this a fixed non-negotiable cost?

What specific late fees or penalties apply beyond the stated 10% of royalty payments, and under what circumstances are these triggered?

The franchise agreement references 15 non-curable defaults. Can you provide the complete list and clarify what recourse franchisees have if they dispute a non-curable default determination?

How many of the 8 pending litigation cases involve disputes related to territorial encroachment, given that encroachment protection is listed as False?

Since all 8 litigation cases name the franchisor as defendant, what categories of claims are represented (e.g., contract disputes, regulatory violations, franchisee disputes)?

What is the average time to resolution for litigation cases in the franchisor's history, and are there any pattern trends in outcomes?

The renewal fee is $25—is this the only cost associated with renewal, or are there additional expenses such as retraining or facility upgrades required?

Can you provide the financial performance (Item 19) data, including median and average gross sales by unit, to validate the franchise's earning potential?

Given that the non-compete is 2 years with no mileage radius specified, how is the geographic scope of this non-compete interpreted and enforced?

Are there provisions allowing franchisees to renegotiate terms during the renewal process, or must they accept the renewal terms as written?

What percentage of franchises successfully renew versus choosing not to renew, and what are the primary reasons cited by franchisees for non-renewal?

The Personal Guarantee binds franchisee owners personally to all obligations. Are there circumstances where this guarantee can be limited or released?

How often has the franchisor exercised termination rights for non-monetary defaults, and what is the typical remediation process before termination is imposed?