The franchise fee of $50,000 is above the typical range for this category. What specific services, training, and support are included in this higher fee compared to competitors?
#1
The monthly technology fee of $1,000 significantly exceeds the typical range of $102.75-$499.75. What systems and services does this fee cover, and is this fee fixed or subject to increases?
#2
The royalty rate of 6.5% is above the typical 5.0-6.0% range. How does this rate compare to the advertising fund contribution of 1.0%, and are there any volume-based discounts or incentives?
#3
The advertising fund rate of 1.0% is below the typical 2.0-3.0% range. How is the marketing fund allocated, and what marketing support and campaigns should franchisees expect with this lower contribution rate?
#4
The transfer fee of $25,000 is above the typical range. What is included in this fee, and are there any circumstances where this fee could be reduced or waived?
#5
Three units closed in 2022 and three in 2024. Can you provide specific reasons for these closures and details about the units' performance before closure?
#6
Despite 6 closures over two years, the system grew by 9 net units. What percentage of units are company-owned versus franchisee-owned, and does this affect growth calculations?
#7
The non-compete clause extends 3 years and 10 miles, which exceeds the typical 2-year term. What specific activities are restricted, and how is compliance monitored?
#8
With only 3 renewal conditions compared to the typical 7.0-9.0 range, what happens if a franchisee's renewal is not contingent on meeting specific performance metrics?
#9
The termination causes count of 13 is below the typical range of 14.0-23.0. What specific grounds allow the franchisor to terminate the agreement?
#10
No litigation cases have been reported. Can you provide a list of terminated franchises and the reasons for termination over the past 5 years?
#11
The System Health score of 80 is above typical range. What specific metrics or factors contributed to this above-average health score?
#12
The Territory score of 100 (perfect) is above the typical 60.0-90.0 range. How does the franchisor define and protect exclusive territories, and what is the minimum territory size?
#13
What is the average unit volume (AUV) or median gross sales for existing franchisees, and why is Item 19 financial data not provided?
#14
All disputes are resolved through binding arbitration in Orange County, California. If a franchisee is located outside California, what are the associated costs and logistics?
#15
Personal guarantees are required from all owners, and spouses must sign guarantees covering all financial obligations. What recourse do franchisees have if the franchisor pursues personal guarantees against spouses?
#16
Franchisees must purchase from franchisor-approved suppliers. Can you provide a list of approved suppliers and the typical cost markups or price premiums compared to open market rates?
#17
The Investment Cost score of 34 is significantly below the typical 75.0. What is the total initial investment range, and what are the major cost categories?
#18
With a 10-year initial term and 20-year total potential, what happens to improvements and equipment at the end of the lease term?
#19
What were the exit circumstances for the 3 units that closed in 2022—were they sold, closed due to performance issues, or other reasons—and are similar patterns emerging with the 3 closures in 2024?
#20