What is the territory type offered (exclusive, non-exclusive, or hybrid), and what are the geographic boundaries?
#1
Does the franchise agreement provide exclusive territory protection, and if so, what are the specific encroachment protections?
#2
What non-compete restrictions apply during the franchise term and after exit or non-renewal?
#3
What is the initial franchise term length, and how many renewal options are available?
#4
What are the specific fees for franchise renewal, territory transfer, and unit sale?
#5
How many franchisees have exited the system in the last 3 years, and what were the primary reasons?
#6
What litigation has the franchisor been involved in over the past 3 years, and what were the outcomes?
#7
Does the franchisor provide Item 19 (financial performance representations) in the Franchise Disclosure Document?
#8
How many operating units does the system currently have, and what has been the trend over the past 3 years?
#9
What support, training, and ongoing services are included in the franchise package?
#10
Are there any pending or threatened litigation cases involving the franchisor?
#11
What is the termination and non-renewal rate for franchisees in this system?
#12
What operational metrics or benchmarks should franchisees expect to achieve within the first 1-3 years?
#13
How is the ad fund or marketing contribution calculated and used?
#14
What happens to the territory if a franchisee decides to sell or transfer their franchise?
#15
Are there any restrictions on how franchisees can operate, set pricing, or market their business?
#16
What is the typical franchisee investment, and what does it cover?
#17
Who are the key suppliers and vendors required for franchise operations, and are there favorable pricing agreements?
#18