16 Handles

What were the specific reasons for the 2 franchisor-initiated terminations in 2022 and 2024, and what violations or performance issues triggered these actions?

The transfer rate of 6.9% exceeds typical benchmarks for this category—what factors are driving the higher-than-average frequency of unit transfers?

Bottom quartile sales of $547,450 significantly exceed the typical range, suggesting strong performer variation—what percentage of units fall into the top, middle, and bottom quartile sales tiers?

Can you provide detailed profit and loss data for a representative unit, including itemized operating costs, to supplement the gross sales figures in Item 19?

The contract includes 10 renewal conditions, above the typical range—what are the specific performance benchmarks franchisees must meet to renew, and how strictly are these enforced?

Your non-compete clause extends 25 miles, exceeding the typical range—what is the business rationale for this expanded geographic restriction, and has it been enforced in prior disputes?

How many prospective franchisees inquired about locations in the past 2 years, and how many were denied due to territorial limitations or encroachment concerns?

The liability and indemnification clause requires mandatory spouse guarantees—has this provision been invoked in any disputes, and what claims have franchisees been required to indemnify the franchisor for?

With 0% termination and non-renewal rates, what is your process for identifying underperforming units, and at what sales or performance threshold do you typically intervene?

Can you clarify the equipment and supply approval process mentioned in operational control clauses—do approved suppliers offer competitive pricing, and can franchisees request alternative vendors?

The renewal fee is $10,000—is this fee negotiable, and are there any additional capital investment requirements to renew a franchise for a second 5-year term?

What support and training are included in the initial investment, and what are the costs for ongoing training or operational support beyond the monthly technology fee of $95?

Of the 2 units that ceased for 'other' reasons in 2024, what circumstances led to those exits, and were they considered voluntary or involuntary closures?

How many franchisees have successfully renewed their contracts, and of those, how many renewed without additional capital improvements or facility upgrades?

Does the franchisor have any restrictions on franchisees opening competing concepts, or can they operate non-competing food service businesses simultaneously?

The system has 31 units—where are these units geographically concentrated, and what is the franchisor's expansion strategy for the next 3 years?

What are the specific conditions under which the franchisor can terminate for cause versus convenience, and does the contract provide for cure periods before termination?

Can you provide customer satisfaction or franchisee satisfaction survey results, given the perfect score on Support & Training?

Of the 5 transfers in the 3-year period, how many involved internal transfers to existing franchisees versus external sales to new parties, and what were the terms?

Given the zero litigation history, how are disputes typically resolved—through mediation, arbitration, or litigation—and are there mandatory dispute resolution provisions in the franchise agreement?