Can you provide projections for when you expect to reach meaningful unit numbers (10+ units) to better assess system viability and turnover patterns?
#1
Your average gross sales of $261,168 fall below the typical range for Sports & Recreation franchises. What factors account for this lower performance, and how do you project this will improve?
#2
Why do your Support & Training and Investment Costs scores fall below the typical range for your category? What specific support gaps or cost issues should franchisees be aware of?
#3
With only 1 unit currently in operation, how can prospective franchisees validate financial projections and operational success when limited comparable unit data exists?
#4
The franchise agreement requires mandatory binding arbitration in Hamilton County, Ohio. If you operate outside Ohio, are you comfortable with all disputes being resolved in this jurisdiction?
#5
What specific suppliers are designated or approved for the 4 purchase categories (inventory, architecture/design, software, marketing), and can franchisees negotiate alternative suppliers?
#6
Can Another Nine establish maximum purchase prices for required suppliers, and if so, how are price increases communicated and capped?
#7
The non-compete restriction covers 2 years within 10 miles of your location and any other Another Nine location. How will this be enforced if the system expands, and could this significantly restrict future employment opportunities?
#8
Personal guarantees are required from principals owning 51%+ and their spouses. Can you explain the full scope of personal liability and indemnification, including scenarios where damages are caused by franchisor negligence?
#9
What is the renewal fee amount, and are there any conditions under which renewal might be denied or become significantly more expensive?
#10
Of your 11 non-curable default categories, what are the specific triggers that could result in immediate termination without a cure period?
#11
The territory is protected but not exclusive. What specific encroachment protections exist, and can Another Nine place additional franchise locations within your protected territory?
#12
How many years of operating history does Another Nine have, and what operational challenges have you encountered that prospective franchisees should understand?
#13
Since no litigation cases exist, has Another Nine received any regulatory complaints, cease-and-desist letters, or other formal disputes not reflected in this data?
#14
What is your refund policy for the $49,500 franchise fee if unit approval is denied or if the franchisee decides not to proceed?
#15
Can you provide the Item 19 financial performance statement, including the number of units that reported data and the range of performance outcomes?
#16
What marketing support and advertising strategy does Another Nine provide to new franchisees, given the 1.0% ad fund allocation?
#17
Are there any royalty rate reductions for multi-unit franchisees, or does the 7.0% rate apply uniformly across all units?
#18
What happens to the transferred franchise fee if you decide to exit within the first few years, and is any portion credited toward a transfer?
#19
Given the early stage of system development, what is your timeline for market expansion, and how will this affect unit valuations and territory protection for existing franchisees?
#20