WOOPS! Franchise

Can the franchisor provide detailed explanations for each of the 6 unit closures in 2024 and 3 terminations, including whether they were franchisor-initiated or franchisee voluntary exits?

What specific operational or financial issues led to the acceleration in closures from 2 units in 2023 to 6 units in 2024?

With termination rate of 10.7% significantly above the typical 0.0-0.8% range, what are the most common reasons franchisees are being terminated?

The transfer rate of 25.0% is exceptionally high compared to typical 0.0-6.9% range—why are so many franchisees transferring their units rather than renewing or remaining in the system?

Given the System Health score of 17 (well below typical 50-75 range), what operational changes or improvements is the franchisor implementing to stabilize unit performance?

What support or operational assistance did the franchisor provide to units that closed in 2024, and how does the franchisor evaluate when to recommend closure versus continuing operations?

Can you provide the specific financial performance metrics from Item 19 for comparable units (sales, costs, profitability) to understand whether closures were due to inadequate unit economics?

The non-exclusive territory with no encroachment protection raises concerns—what guarantees exist that the franchisor won't open competing units near my location?

The initial franchise fee of $45,000 is higher than some competitors, while the royalty rate of 4.0% is lower than typical—what is the breakdown of how ongoing fees are allocated for support, technology, and marketing?

With a 15-year total potential term (below typical 20 years), what happens at the end of the second 5-year renewal term—can franchisees renew again or must they exit?

The renewal fee of $22,500 (50% of current franchise fee) could increase significantly if the initial fee is raised—is there a cap on future renewal fee increases?

What specific conditions among the 7 renewal requirements are most likely to be denied, and have any franchisees been denied renewal in the past 3 years?

The franchise agreement includes 23 non-curable default events that result in immediate termination—can you provide the complete list and clarify which operational or financial metrics could trigger immediate termination?

Can the franchisor clarify how the 5-day cure period for defaults works in practice, and provide examples of defaults that have been cured versus those resulting in termination?

All disputes require binding arbitration with class actions waived—has the franchisor faced any arbitration cases, and what were the outcomes?

The personal guarantee requirement extends to spouses covering all monetary obligations—can you explain the full scope of liability and whether there are any limits to indemnification obligations?

Franchisees must purchase all equipment, fixtures, and supplies from designated suppliers—what percentage of ongoing costs are tied to these required supplier purchases, and is there transparency in pricing?

Can the franchisor provide a list of all designated suppliers and explain how suppliers are selected and whether franchisees have any input into these relationships?

With the Territory score of 50 (below typical 60-90 range), what specific territory protections exist and how does the franchisor define and enforce territory boundaries?

What percentage of the 6 unit closures in 2024 were in the same geographic area, and does the franchisor see geographic or market-related patterns in failures?