Youth Enrichment League ({YEL!})

Why is the franchise fee of $22,500 significantly lower than the typical range of $40,000-$55,000 for similar childcare and education franchises?

Can you explain the reason for the one unit transfer in 2024 and whether this was a voluntary transfer or franchisor-initiated?

What specific conditions must franchisees meet to renew their agreement, given that only 5 renewal conditions are disclosed compared to the typical 6-9 conditions?

The transfer rate of 20.0% is notably higher than the typical range of 0.0-6.3%. Is this transfer rate typical for your franchise system or was 2024 an unusual year?

Since Item 19 (Financial Performance Representations) is not provided, what financial performance information can you share about existing units to help prospective franchisees understand earning potential?

The royalty rate of 6.0% is below the typical 7.0-8.0% for similar franchises. Are there any additional mandatory fees or minimum quarterly payments that effectively increase the ongoing cost burden beyond the stated royalty rate?

You mention a minimum quarterly royalty fee of $2,250 beginning after the third anniversary. How many current franchisees are paying this minimum quarterly fee versus paying royalties based on actual sales?

Can you provide a detailed breakdown of all mandatory suppliers and approved vendors, including pricing comparisons to verify that franchisor-required purchases are competitively priced?

What is the actual cost to upgrade a business to 'current standards' as required for renewal, and has this cost varied significantly between renewal cycles?

The non-compete clause is 2 years within 10 miles. Are there documented cases where franchisees have violated this clause, and what enforcement actions has the franchisor taken?

All disputes must be resolved through binding arbitration in Minneapolis, Minnesota. What are the typical costs and timeframes for arbitration under your franchise agreement?

Can you provide examples of the 16 non-curable defaults that result in immediate termination without a cure period?

The joint and several personal guarantee requires spouses to guarantee obligations. How often has the franchisor pursued claims against franchisees' spouses, and under what circumstances?

With only 5 current units, how long has the franchise system been operating, and what is the historical unit count over the past 5-10 years?

Are the 5 current units profitable, and what is the average unit volume or revenue per unit?

Has the franchisor ever denied a renewal application, and if so, on what grounds and with what frequency?

What happens to a franchisee's business and clients if the franchisor terminates the franchise agreement for a non-curable default?

The transfer fee of $5,500 is below typical ranges. Are there additional costs associated with transferring a franchise that are not reflected in this fee?

How does the franchisor enforce the exclusive territory protection, and are there documented cases of encroachment disputes being resolved?

Given that no litigation has been filed in 3 years, can you explain what dispute resolution mechanisms franchisees have used, if any?