69 units closed in the most recent FDD period. Ask franchisees: what actually drove those closures — was it market conditions, operations, or franchisor decisions?

Franchisees who left voluntarily vs. those terminated. Any pattern by region, years in system, or franchisee profile.

Cure period is only 5 days. Ask: have you ever received a default notice? How did the franchisor handle it — were they reasonable?

A short cure period combined with aggressive enforcement is a serious risk. Look for franchisees who feel supported vs. managed by threat.

How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?

Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.

If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?

Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.

Item 2 shows recent leadership changes. Ask current franchisees: has the change in leadership affected support quality, speed of decisions, or the culture of the system?

Whether the new leadership has franchise operations experience. Disruption in field support after leadership transitions is common.

What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?

Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.