What specific territory protections are offered to franchisees, and why does the territory score fall below the typical range for this franchise type?
#1
Is the franchise territory exclusive, and if so, what are the geographic boundaries and protection mechanisms?
#2
What encroachment protection exists if the franchisor opens additional units or allows multiple franchisees in overlapping areas?
#3
Can you provide the complete Franchise Disclosure Document (FDD), particularly Item 19, which should contain financial performance representations?
#4
What is the current number of operating units, and what has the unit growth or decline been over the past 3 years?
#5
How many franchise units have exited the system in the past year, and what were the primary reasons (closures, transfers, non-renewals)?
#6
What are the royalty rate, advertising fund contributions, technology fees, and any other ongoing fees charged to franchisees?
#7
What is the initial franchise fee, and are there transfer or renewal fees associated with the franchise agreement?
#8
What litigation, if any, has the franchisor been involved in during the past 3 years, and what were the outcomes?
#9
What is the initial term of the franchise agreement, and how many renewal options are available?
#10
What non-compete restrictions apply after the franchise relationship ends, and for how long?
#11
Does the franchisor provide training and ongoing support, and if so, what is the scope and cost?
#12
How are disputes between franchisor and franchisee typically resolved (arbitration, litigation, mediation)?
#13
What financial performance data is available for existing franchisees, and how many units reported this data?
#14
Can you explain the Territory score outlier and what factors contributed to it falling below the typical range?
#15
Are there any pending legal cases involving the franchisor or franchisees in this system?
#16
What is the termination rate for franchisees, and under what circumstances can the franchisor terminate a franchise agreement?
#17