Wahlburgers

What specific operational, financial, or market conditions led to the closure of 87 units in 2024, representing nearly 79% of the system in a single year?

Can you provide details on the 3 units terminated in 2024? What were the stated reasons for termination and were any disputes involved?

The system contracted from 110 units to 25 units in one year. What support or communication did the franchisor provide to franchisees during this collapse, and were there any efforts to prevent closures?

With a technology fee of $685 monthly (above the typical $90-500 range for casual dining), what specific technology systems and services justify this premium cost?

The non-compete clause of 2 miles is significantly below the typical range of 7.5-15 miles for casual dining. Why is the restricted territory so small, and does this allow competitors to open nearby after a franchisee exits?

Can you explain why the initial franchise term is 20 years, which exceeds the typical 10-15 year range for casual dining franchises?

The franchise offers no territorial exclusivity or encroachment protection. Can the franchisor open additional Wahlburgers locations within your territory or nearby?

What is included in the mandatory renovation requirement for renewal, what is the estimated cost, and what happens if a franchisee cannot afford or complete the renovation?

Can you provide historical Item 19 financial performance data or current financial performance disclosures, given that no Item 19 is currently available?

How many of the 87 units that closed in 2024 were owned by multi-unit franchisees versus single-unit operators?

What is the current financial performance or profitability of the remaining 25 units, and are there any at-risk locations you have identified?

With termination rates of 2.7% and a 3-year turnover rate of 68.4%, what are the primary reasons franchisees cite for exiting the system?

The franchise agreement has 15 non-curable defaults allowing immediate termination. Can you provide specific examples and clarify what operational issues would trigger immediate termination without a cure period?

Renewal requires payment of $20,000 plus mandatory renovation. What is the average cost of mandatory renovations, and what is the realistic renewal rate for franchisees who reach the end of their 20-year initial term?

The franchisor maintains supplier restrictions on three levels including single-designated sources. What percentage of ongoing costs are locked into franchisor-approved or designated suppliers, and are there price controls?

Can you provide details on the personal guarantee requirement and explain what scenarios would trigger franchisor pursuit of personal guarantees beyond the franchisee's business entity?

With no renewal data available, how many franchisees have renewed their agreements since the franchise began, and of those eligible for renewal in the past 3 years, what percentage renewed versus exited?

Are there any pending or threatened lawsuits, regulatory investigations, or disputes that are not reflected in the current 1 total litigation case on record?

What is the current unit growth trajectory, and does the franchisor have any expansion or stabilization plans for the remaining 25 units?