Weed Man

What specific events or business challenges triggered the loss of 134 franchise units between 2023 and 2024, representing a 52.6% system contraction?

Can you provide detailed information on the 134 unit exits between 2023 and 2024—how many involved franchisee closures due to unprofitability versus voluntary sales or transfers?

The franchise fee of $50,000 exceeds the typical range for this category. How does this fee compare to your major competitors, and what justifies the premium?

With a System Health score of 0 (well below the 47.3-68.5 typical range) and Financial Performance of 40 (below typical 60.0), what initiatives is the franchisor implementing to stabilize and grow the remaining 121 units?

What is the actual turnover rate for the current 121-unit system? Are additional closures or transfers anticipated in 2024 or 2025?

Can you clarify the significant disparity between the termination rate (0.0%) and the dramatic unit decline—are franchisees exiting voluntarily due to profitability concerns?

Item 19 (financial performance data) is not provided. Why does the franchise not disclose unit-level financial performance, and what financial metrics should prospective franchisees expect?

The renewal conditions require payment of 50% of the then-current initial franchise fee. How much would a renewal cost if current market conditions inflate the initial fee to $75,000 or higher?

Can you provide the average revenue, operating costs, and net profit for the franchises that remained operating through 2024, especially those in the top-performing quartile?

What specific support and training improvements are planned to address the Support & Training score of 72 (below the typical 76.0-86.8 range)?

The non-compete clause extends 2 years and 50 miles. For franchisees exiting in 2024, how many filed disputes regarding the scope or enforceability of this restriction?

Have there been any disputes between the franchisor and franchisees regarding encroachment or territory violations, and if so, how were they resolved?

What is the current status and profitability of the 121 remaining franchises? Are units concentrated in specific regions, or is the decline uniform across all territories?

How many of the 134 units that exited held mortgages or equipment financing through the franchisor or franchisor-affiliated lenders, and did financing obligations factor into their decisions to close?

The minimum annual royalty is $7,000 per territory. How many remaining units generate less than $7,000 in annual revenue, and how does the franchisor address units unable to meet this obligation?

What happens to a franchisee's exclusive territory if they transfer their license? Will the franchisor merge it with an adjacent territory or re-license it at the new $50,000 franchise fee?

Can you explain the 5.8% transfer rate (above the typical 0.0-5.6% range)—are transfers primarily to existing franchisees consolidating territories, or to new third parties?

What are the specific 10 termination causes outlined in the franchise agreement, and which causes have been invoked most frequently over the past 3 years?

Given the personal guarantee requiring franchisees to indemnify the franchisor on an unlimited basis, have any guarantors faced personal liability claims beyond their initial investment?

If a franchisee cannot secure renewal approval due to one of the 7 renewal conditions, are there any buyout or wind-down obligations the franchisor provides to help the franchisee exit the business?