Voodoo Brewing Co.

What are the specific reasons behind the 2 pending litigation cases against the franchisor, and what is the timeline for resolution?

Can the franchisor provide details on the 4 unit terminations in 2024? Were these for non-payment, operational defaults, or other reasons?

Why has the termination rate increased dramatically to 14.8% in 2024 when it was 0% in prior years? What operational or financial triggers led to these terminations?

The bottom quartile unit sales of 253,796 are substantially lower than the typical range. What performance metrics trigger mandatory intervention or support, and at what sales threshold might a unit face termination risk?

Item 19 financial performance disclosure is available. Can you provide the median, average, and range of gross sales by unit vintage and market type to assess realistic performance expectations?

Given the 31% 3-year growth rate, what is the franchisor's expansion timeline and strategy? How will rapid growth impact market saturation and territory support?

What specific disputes have led to the 3 litigation cases? Are they related to franchise operations, payment disputes, territory encroachment, or other matters?

The franchise fee of 75,000 is 50% above the typical range. What additional training, support, or equipment justifies the premium fee compared to competitors?

The advertising fund rate of 0.5% is substantially lower than the typical 1.0-3.0%. Is advertising support sufficient given the competitive casual dining market? How is the fund allocated?

Why does the transfer agreement include a 50% renewal fee (of the then-current initial franchise fee)? Could this limit your ability to sell the unit or restrict buyer pool?

The non-compete radius of 25 miles is double the typical range. How does this impact your ability to remain in the restaurant industry within your region after exit?

What happens during renewal if you fail to meet the 8 specified renewal conditions or cannot afford the 30% renewal fee? Are there any escalation or grace period options?

The agreement requires mandatory remodeling at renewal. What is the estimated cost and timeline for remodeling, and are there financing options available?

Personal guarantees are required from all owners and spouses. Does the franchisor waive this requirement for investors or passive owners, or is it absolute?

What is the franchisor's history with unit transfers? How many transfers have been requested, approved, and rejected in the past 3 years?

Disputes are resolved through binding arbitration in Crawford County, Pennsylvania. If you operate outside Pennsylvania, how does this impact resolution accessibility and costs?

What are the 15 non-curable defaults identified in the termination clause, and how strictly are operational defaults enforced?

Are there any changes pending to the franchise agreement, fee structure, or operational requirements that might affect future profitability?

What is the franchisor's plan to address the elevated closure and termination rates, and how will they support existing franchisees to improve retention?