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What specific breach or non-compliance triggered the 3 franchisor-initiated terminations in 2024, and how do these compare to your standard enforcement patterns?

Can you provide detailed financials showing how the 62 current units break down by age, location, and performance tier, given the 77% growth in one year?

Of the 27 net new units added in 2024, how many are conversions from other brands versus newly developed territories?

The franchise agreement lists 28 termination causes—significantly above the industry typical range of 14-21. Can you clarify which causes are most commonly invoked and provide examples of past enforcement?

Your renewal conditions count is 10, above the typical range of 6-9. What specific conditions have caused franchisees to fail renewal, and how often have renewal applications been denied?

There is 1 pending litigation case involving the franchisor. Can you disclose the nature of this case, the parties involved, and anticipated timeline for resolution?

What is the rationale for the $5,000 renewal fee, and has this fee been contested or negotiated by franchisees in the past?

Can you provide a breakdown of the 62 current units by performance category (top 25%, middle 50%, bottom 25%) and average unit volumes for each tier?

The 2-year, 25-mile non-compete is restrictive. How aggressively does the franchisor enforce this post-termination, and are there examples of legal disputes over scope?

Given the franchise agreement requires binding arbitration and personal guarantees from all owners and spouses, how many disputes have gone to arbitration in the past 3 years?

The royalty structure uses the greater of 7% gross revenue or a minimum monthly amount. What is the stated minimum monthly royalty, and at what revenue level does 7% exceed this minimum?

Late payment penalties are 1.5% per month (18% annually). How many franchisees have incurred these penalties, and is there a payment plan or cure period offered?

Can you clarify the 10 conditions required for renewal, and provide statistics on how many franchisees have successfully renewed versus been denied renewal?

The transfer fee is $10,000. What does this fee cover, and what is the franchisor's approval process and criteria for unit transfers?

System growth was 51% over 3 years. What percentage of this growth came from franchisee-owned expansions versus franchisor recruitment of new franchisees?

Item 19 shows median sales of $517K and average of $662K—a significant gap. What percentage of units fall below the median, and what is the range of unit economics at the 25th and 75th percentile?

Of the 4 unit transfers in 2024, were these transfers between existing franchisees, to new owners, or back to the franchisor?

The Investment Costs score of 66 falls below the typical range. Can you detail all initial investment components and whether financing programs or support are available?

The Ongoing Fees score of 60 is below typical. Beyond the stated 7% royalty, 2% ad fund, and $599 tech fee, are there additional mandatory fees, assessments, or charges?

Can you provide contact information for at least 10 franchisees who have owned units for 2+ years, particularly those in the bottom 25% of performers, so I can conduct independent reference checks?