What explains the below-typical gross sales figures ($630,040 median vs. $780,498-$1,815,074 range)? Is this due to unit size, market positioning, or early-stage development?
#1
Why is the transfer rate at 6.7% above the typical range of 0.0-5.73%? What motivated the single transfer in 2023, and are there any performance or satisfaction issues driving franchisee exits?
#2
The transfer fee of $5,000 is significantly lower than the typical range of $8,750-$20,000. Will this fee structure change, and what does it cover in the transfer process?
#3
With only 3 renewal conditions compared to the typical 6.0-9.0 range, what are the specific conditions franchisees must meet to renew their agreements after 10 years?
#4
Can you provide detailed financial performance data for individual unit locations? Do the sales figures vary significantly by market or unit age?
#5
How do you support franchisees in achieving the disclosed sales figures, given they average around $635,000? What marketing and operational support is included?
#6
The agreement requires purchasing from franchisor-approved suppliers across 4 major categories. Can franchisees source alternative suppliers if prices or quality are comparable?
#7
What specific circumstances trigger termination without a cure period? Of the 15 non-curable defaults listed, which are most commonly invoked?
#8
Personal guarantees are required from all owners. If a franchise is owned by an LLC or corporation, does the franchisor still require personal guarantees from individual shareholders?
#9
The non-compete is 2 years and 5 miles. How is this enforced post-termination or non-renewal, and has the franchisor previously litigated non-compete violations?
#10
With zero litigation cases over 3 years, are there any disputes currently in mediation or informal resolution? How does the franchisor prefer to handle disagreements?
#11
The renewal fee is $5,000. Are there additional renewal costs, and what happens if a franchisee wishes to renew but the franchisor declines?
#12
How many of the current 17 units were opened within the last year, and what is the average unit lifespan to date?
#13
What is the franchisee satisfaction rate, and do you conduct regular franchisee surveys or have an advisory council?
#14
Can you clarify the operational control clause regarding maximum/minimum pricing for ingredients and supplies? How frequently are these prices adjusted?
#15
Are there any territories currently available in your target market, and what encroachment protections apply if new units are opened nearby?
#16
What training, ongoing support, and retraining programs are included beyond the initial launch phase to help franchisees reach the disclosed sales figures?
#17
How is the $300 monthly technology fee spent, and is it for POS systems, online ordering, or other platforms? Can franchisees use alternative systems?
#18
Of the 2 unit increases in the past year, how many were new franchise sales versus transfers of existing units?
#19