USL Championship

What were the specific reasons for the 5 unit closures in 2022, and what circumstances have led to improved stability in 2023 and 2024?

Can you provide details on the 3 pending litigation cases against the franchisor, including the nature of claims and expected resolution timelines?

How is the $25,000,000 franchise fee calculated and allocated, and how does this compare to capital requirements for operating a competitive sports team?

What is the rationale for a $2,500,000 transfer fee, which is 130 times higher than typical franchise transfer fees in this category?

The 5-year non-compete is significantly longer than typical (2 years). Can you explain what activities are prohibited and how this restriction is enforced?

Given the territory is 'protected' but 'non-exclusive,' what specific encroachment protections are in place, and under what circumstances could another team be placed in the same market?

The initial 20-year term and 20-year renewal option (40-year total) are double the typical range. What is the rationale for these extended periods, and are there any circumstances under which the franchisor can decline renewal?

What financial performance benchmarks or profitability metrics must franchisees achieve to maintain their license, and what happens if these benchmarks are not met?

Can you explain the personal guarantee requirement for equity owners holding 5% or more, and what specific obligations this covers?

The franchise provides no Item 19 financial performance disclosure. What financial information is available to prospective franchisees regarding median or average unit revenues and profitability?

How has the litigation activity affected franchisee confidence, and what measures is the franchisor taking to address the issues underlying these cases?

What support and training does the League Office provide to franchisees, and how are operational standards enforced across the 24-unit system?

Given the decline from 29 to 24 units over 3 years, is the franchisor actively seeking to expand the system, and what expansion plans exist?

How are disputes between the franchisor and franchisees handled under the binding arbitration requirement in Tampa, Florida, and what is the average cost and timeline for resolution?

The non-compete prohibits ownership or operation of 'rival leagues or teams participating in rival leagues.' How is 'rival' defined, and does this restrict participation in other soccer or sports ventures?

What renewal fee of $10,000 is charged at the end of the initial 20-year term, and are there additional fees or requirements associated with renewal?

Can you provide a breakdown of all capital expenditures required to launch and operate a franchised team, beyond the $25,000,000 franchise fee?

How does the franchisor handle disputes regarding territory encroachment given the non-exclusive territory structure, and what remedies are available to franchisees?

What employee non-solicitation restrictions apply after termination or non-renewal, and for how long can franchisees be prevented from hiring former League Office staff?