Top Rail Fence

Can you provide details about the 1 pending litigation case, including the nature of the dispute and expected timeline for resolution?

What was the franchisor's 1 plaintiff case about, and what was the outcome or current status?

How do you define and calculate the transfer rate of 10.2%? Does this include owner changes, territory transfers, or both?

What are the 10 renewal conditions that must be met to renew the franchise agreement, and are any particularly costly or operationally complex?

Of the 28 termination causes listed in the franchise agreement, how many have been invoked in the past 3 years, and what were the primary reasons?

The minimum monthly royalty is $300 regardless of sales. For units with lower monthly sales, how does this impact their profitability and what is the average monthly revenue for franchisees in the bottom quartile?

Explain the rationale for requiring spousal guarantees and joint-and-several liability from all 5%+ owners. What happens to the spouse's liability if the franchisee and spouse later divorce?

Of the 8 required supplier categories, what is the typical cost markup or margin the franchisor or its affiliates earn, and are there alternative suppliers allowed?

The franchise has grown from 0 to 167 units in 3 years. How many of these units are newly developed versus acquired through acquisition or conversion?

Can you explain why the binding arbitration clause specifies Mecklenburg County, North Carolina, and whether franchisees in other states have successfully challenged this venue requirement?

What support and training do you provide to help new franchisees reach the median gross sales of $1,054,051 reported in Item 19?

The non-compete clause covers a 25-mile radius from 'any franchised business territory.' If the system expands in your area, could your non-compete zone expand without consent?

How many franchisees have failed to meet the 10 renewal conditions in the past, and what were the most common reasons for non-renewal?

What is the median net profit or EBITDA for units operating at median gross sales levels after accounting for royalties, technology fees, and other ongoing obligations?

The 1.5% monthly late fee (18% annually) is substantially higher than typical borrowing rates. Is this fee negotiable, and are there any payment plan options for franchisees facing cash flow challenges?

Has the franchisor ever waived the $5,000 renewal fee for qualifying franchisees, and what flexibility exists in the renewal process?

What percentage of the 17 units that transferred in 2024 were due to franchisee financial stress versus voluntary owner transitions or retirement?

The Investment score of 69 falls below the typical range for this category. What is driving a lower investment score compared to peer franchises, and what does this mean for franchisee financial risk?

Does the franchise agreement prohibit franchisees from holding other business interests or operating side businesses, and if so, how is this monitored and enforced?