Can you provide detailed information about the 5 total litigation cases, including the nature of disputes, outcomes, and whether any involved franchisor-franchisee conflicts?
#1
Why does the franchise agreement include 32 termination causes compared to the typical 15-22 for similar franchises, and which causes are non-curable defaults allowing immediate termination?
#2
What specific products and services does the franchisor designate for the 13 supplier categories, and how much control do franchisees have in selecting alternative suppliers?
#3
Given the $25,000 transfer fee above typical market rates, can you explain the justification and whether this fee is negotiable?
#4
Your 6.0% royalty rate is below the 7-8% typical range—can you clarify if this rate is locked in for the initial term or subject to increase at renewal?
#5
How does the $2,500 monthly minimum royalty affect franchisees during seasonal slowdowns, particularly in the summer months when swim school demand may fluctuate?
#6
The renewal conditions require 50% of the then-current initial franchise fee and complete facility renovation—what does 'complete renovation' entail and what are estimated costs?
#7
Can you provide a breakdown of the 3 litigation cases filed in the past 3 years, including whether they involved operational compliance, payment disputes, or territorial disputes?
#8
With a 33.3% unit growth rate in the past year, what is your strategy for continued expansion and are there geographic markets where you plan to increase density?
#9
The binding arbitration clause requires resolution in Tarrant County, Texas regardless of franchise location—how does this affect franchisees operating outside Texas?
#10
What support and training is included to justify the perfect 100/100 score in this category, and what are the specific ongoing support programs available?
#11
Can you clarify why the investment cost score is 0/100 and what costs are not included in the stated $50,000 franchise fee?
#12
The personal guarantee requirement means franchisees are personally liable for all obligations—are there any circumstances under which this guarantee can be limited or removed?
#13
What percentage of current franchisees have accessed the 2 renewal options, and what is the typical renewal experience regarding required renovations and fee increases?
#14
Given the wide sales performance spread ($1.0M to $2.7M across quartiles), what factors drive this variance and what is the median performance broken down by unit age and location?
#15
The non-compete clause restricts activity within 2 years and 25 miles—does this apply after franchise termination by the franchisor as well as voluntary exit?
#16
How is the $2,000 annual technology fee allocated, and does it cover all required software systems or are there additional technology costs?
#17
Can you provide Item 19 financial performance data showing unit profitability, and does this data account for owner compensation?
#18
Are the 3 litigation cases from the past 3 years still resolved, and were any settlements or confidentiality agreements involved?
#19
What is the geographical distribution of your 12 current units, and are there any exclusive territory protections despite the non-exclusive territory designation?
#20