Your CBD Store

Of the 58 units terminated in 2023, what were the primary reasons cited for termination by the franchisor?

Can you provide details on the 3 cases the franchisor initiated as plaintiff, including the parties, claims, and outcomes?

What are the specific 23 termination causes listed in the franchise agreement, and how frequently is each invoked?

The system lost 6.38% of units year-over-year despite lower royalty rates (2.0%) than competitors. What factors does the franchisor attribute to this decline?

Given the 19.5% annual termination rate, what support or intervention programs does the franchisor offer to struggling franchisees before termination?

Can you explain the 2 cases where the franchisor was defendant, including the nature of the claims and their current status?

What is the status of the 1 pending litigation case, and what are the alleged claims?

The Ad Fund Rate is 3.0%, above the typical 1.0-2.0% range. How is this fund utilized, and can franchisees see itemized spending reports?

With a 5-year initial term (below the typical 10-year standard), how does the franchisor justify shorter contract lengths given the high termination rate?

The non-compete is limited to 5 miles and 2 years. How does this protection work given the exclusive territory designation?

What are the 9 renewal conditions required to renew for additional 5-year terms?

With a $12,000 minimum quarterly purchase requirement from Sunflora affiliate, how do unit economics work for lower-volume stores, particularly given the 19.5% turnover rate?

Can you provide the financial performance data from recent years (Item 19 equivalent) for operating units, given the absence of this information in the FDD?

How many of the terminated units were terminated for failure to meet the $12,000 quarterly minimum purchase requirement?

What training and support do new franchisees receive, given the Support & Training score of 83 falls slightly below the typical range?

Are there restrictions on where franchisees can source products outside of Sunflora, and what percentage of inventory must come from Sunflora?

The renewal fee equals 50% of the then-current initial franchise fee. If the initial fee increases to $30,000 or $40,000, what would the renewal fee be?

Can you explain the discrepancy between the low royalty rate (2.0%) and the high turnover rate (19.5%)—does the lower royalty indicate financial distress in the system?

What percentage of the 279 current units are operating profitably, and how many have been operating for less than 2 years?

Given the Territory score of 100/100 but high terminations, are territory disputes a factor in the litigation or terminations, or are the issues operational/financial?