Travelodge

What specific operational or market factors have contributed to the closure of 91 units over the past 3 years, and how does the franchisor support units in underperforming markets?

Can you provide the Item 19 financial performance statement showing median and average gross sales, and what percentage of franchisees achieve the averages shown?

Given the 15-year initial term with zero renewal options, what is the franchisor's policy on unit continuance after the initial term expires, and are there written renewal procedures despite no formal renewal options?

Why does the advertising fund rate of 2.0% fall below the typical industry range of 2.25-3.5%, and how is the collected fund allocated across franchise marketing activities?

Regarding the 3 pending litigation cases, what are the general subject matters (e.g., performance standards, fee disputes, termination disputes) and expected timelines for resolution?

What specific support and operational improvements has the franchisor implemented in response to the 26.1% 3-year turnover rate, which significantly exceeds typical hospitality franchise turnover?

The System Health score of 37 is below the typical range—what metrics comprise this score, and what remedial actions is the franchisor taking to address systemic weaknesses?

Can you clarify the renewal fee and transfer fee of $35,000 each, and whether these fees apply if a franchisee wishes to continue operations after the 15-year initial term expires?

What are the 5 categories of goods and services that must be purchased exclusively from franchisor-approved suppliers, and what are the typical markup or pricing differences compared to third-party alternatives?

How many of the 2 cases where the franchisor was defendant were initiated by franchisees versus other parties (e.g., employees, suppliers, regulators), and what were the outcomes or settlement amounts?

Given that territory is protected but not exclusive, what specific encroachment protections exist, and have there been franchise disputes related to territory or encroachment in the past 3 years?

Of the 24 units that closed in 2024, how many were in the same geographic markets, and were there identifiable common factors such as competition, renovation needs, or local economic conditions?

The termination rate is 1.2% while the total exit rate is 7.3%—can you detail the specific defaults or breaches that have triggered the 9 franchisor terminations over 3 years?

What are the 15 non-curable defaults specified in the termination clause, and have any franchisees contested or appealed terminations based on claims of ambiguous default definitions?

The franchisor requires personal guarantees from all owners and spouse guarantees of financial obligations—in the event of unit closure, are spouses potentially liable for outstanding lease obligations or debt beyond the franchise fee structure?

How does the Investment Costs score of 86 (above the typical range) align with the $35,000 franchise fee, and what additional costs should prospective franchisees anticipate for initial buildout, technology, and training?

Are there any mass closure events in specific regions (e.g., all units in a state or metro area closing), and if so, did the franchisor provide support or relocation assistance?

What recourse do franchisees have if a franchisor-approved supplier increases prices significantly mid-contract, and can franchisees switch to alternative suppliers with franchisor approval?

Given the 3-year unit contraction of 7.0%, what is the franchisor's 5-year growth projection, and what specific strategies are in place to attract new franchisees and stabilize the system?

Can you provide contact information for 5-10 franchisees in different markets, including some who have recently exited the system, to discuss their experiences and reasons for closure?