Afuri Franchise Inc.

What specific circumstances led to the closure of 2 units in 2023, and are there any ongoing financial or operational challenges affecting the remaining 6 franchisees?

The franchise fee of $45,000 is approximately $5,000 higher than the typical range for fast casual restaurants. What additional benefits, services, or support justify this premium pricing compared to competitors?

The transfer fee of $30,000 is significantly above the typical industry range of $8,750-$20,000. What is the justification for this fee, and is it negotiable under any circumstances?

Can you provide details about the 2 units that ceased operations in 2023, including unit economics, franchise duration, and reasons for closure (e.g., market conditions, franchisee underperformance, location issues)?

With a 1-year turnover rate of 33.3%, what is your strategy to improve unit retention and what support do you provide to underperforming franchisees before closures occur?

The non-compete radius of 50 miles is significantly broader than typical (5-20 miles). How do you determine and justify this radius, and does it meaningfully restrict franchisee business opportunities in rural or less densely populated areas?

Why does the franchise agreement include only a 10-year total potential term compared to the typical 20-26 years for fast casual restaurants, and what happens to franchisees who wish to continue beyond year 10?

The renewal conditions count of 5 is below typical standards. What renewal options are available to franchisees, what are the specific renewal conditions, and what is the renewal fee structure beyond the stated $2,000 fee?

Given that the System Health score is 0/100, significantly below the typical range of 50-75, what objective measures indicate the overall health and stability of the Afuri franchise system?

Can you explain the operational control restrictions mentioned regarding mandatory supplier relationships and pricing controls? How restrictive are these in practice, and what flexibility do franchisees have in sourcing decisions?

The Risk Factors score of 30/100 is well below the typical range of 64-80. What are the primary risk factors the franchisor has identified, and what mitigation strategies are in place?

Are there any pending disputes, regulatory investigations, or other issues not reflected in the 3-year litigation history that prospective franchisees should be aware of?

What are the financial performance thresholds that trigger franchisor intervention or potential termination, and how are franchisees supported if unit sales fall below projections?

Can you provide current franchisee contact information or references who have operated units for at least 3 years, and are there any confidentiality restrictions on what franchisees can disclose?

The 1.0% advertising fund rate is below typical standards. How is this fund utilized, and do franchisees have visibility into advertising spend allocation and campaign effectiveness?

What are the 14 non-curable default provisions referenced in the termination clause, and how frequently have these been invoked to terminate franchisees?

Given the post-term non-compete restricts activity for 2 years within 50 miles of the territory and any franchisor location, how is this practically enforced and have you pursued litigation against franchisees who violated non-compete terms?

Are personal guarantees required from all owners, and what recourse does the franchisor have if a franchisee declares bankruptcy or becomes insolvent during the franchise term?

What is the current number of corporate-owned locations versus franchised locations, and what is the franchisor's strategy regarding future corporate expansion versus franchising?