Can you provide detailed information on the specific reasons for the 21 units closed or terminated between 2022-2024, and whether closures were primarily due to franchisee performance, franchisor decision, or market conditions?
#1
The termination rate of 11.7% is substantially above the typical 0.0-1.8% range. What are the primary causes of termination, and how many of the 21 termination causes in the agreement are typically enforced?
#2
Gross sales across all quartiles fall significantly below category norms—median sales of $821,080 versus typical range of $1,141,949-$2,640,000. What factors explain this gap, and what are typical break-even points for Your Pie units?
#3
The system has declined from 70 to 60 units (-14.3%) over 3 years. Is this decline expected to continue, stabilize, or reverse, and what is the franchisor's growth strategy?
#4
What percentage of unit exits in 2022-2024 were transfers versus terminations versus closures due to franchisee default versus franchisee choice to exit?
#5
The non-compete radius of 25 miles exceeds typical ranges of 7.5-15.0 miles. How aggressively is this enforced post-exit, and have there been disputes over non-compete violations?
#6
Why does the initial term span 10 years while renewal options are only 5 years each? What conditions must be met to qualify for renewal, and what is the typical franchisee renewal rate?
#7
The agreement lists 21 termination causes. How many are curable versus non-curable, and what is the typical cure period for the most common breaches?
#8
Personal guarantees are required from all owners covering breach of every provision. Have franchisees faced personal liability claims, and if so, what are typical settlement amounts?
#9
All disputes require binding arbitration in Atlanta, Georgia. How many disputes have been arbitrated in the past 3 years, and what were the outcomes?
#10
Mandatory supplier relationships are required for 8 product categories. Are franchisees permitted to request alternative suppliers, and what is the process for approval of new suppliers?
#11
The franchisor reserves the right to modify operational standards. How frequently have operational requirements changed in the past 3 years, and do these changes require capital investment from franchisees?
#12
Item 19 financial data is provided. How many units are represented in the average/median sales figures, and what is the range of sales performance across the system?
#13
What percentage of franchisees have renewed their agreements at the end of the initial 10-year term versus exited or been terminated?
#14
The renewal fee of $10,000 is separate from the transfer fee of $10,000. Are there additional costs for remodeling or system upgrades required at renewal?
#15
Has the franchisor initiated any litigation against franchisees for non-payment of fees, breaches of operational standards, or other issues in the past 5 years?
#16
What support and training are provided post-opening, and how has the franchisor adjusted support given the system's unit decline?
#17
Are there any class-action lawsuits or regulatory investigations pending against the franchisor that may not be disclosed in litigation data?
#18
What is the typical payback period for Your Pie franchisees based on actual unit performance, and what percentage of franchisees achieve profitability within the first 3-5 years?
#19