Another Side Tours

Given the franchise system has maintained exactly 3 units since at least 2022 with zero growth, what is the franchisor's growth strategy and timeline for system expansion?

Why does the franchise fee of $30,000 and transfer fee of $1,500 fall substantially below category norms, and what explains this significant pricing differential?

The franchise agreement specifies 16 non-curable defaults resulting in immediate termination—can you provide specific examples of what constitutes a non-curable default?

What is the rationale for the unusually short initial term of 7 years compared to the typical 15-20 years for hospitality franchises, and how does this affect long-term unit investment planning?

The contract contains 8 renewal conditions—what are these specific conditions, and how frequently are franchisees able to satisfy them for renewal?

Can you clarify the 5-mile non-compete radius in an industry where most similar franchises have 0-mile restrictions—how was this distance determined and how is it enforced?

The financial performance shows top quartile sales of $1,040,988 versus bottom quartile of $181,850—what explains this 5.7x variance, and what factors drive this performance disparity?

Are there circumstances under which the franchisor can encroach on a franchisee's protected territory, and under what conditions could territory protection be modified or revoked?

The renewal fee of $3,000 represents 10% of the franchise fee—are there additional costs required to renew the franchise agreement beyond this stated fee?

What specific supplier restrictions are imposed through the 4 categories of franchisor-designated suppliers, and can franchisees negotiate pricing or source alternatives?

The financial obligations mention mandatory minimum sales quotas to retain territory rights—what happens if a unit falls short of quota in a given period?

Can you explain the business rationale for the relatively low ad fund contribution rate of 2.0% compared to the typical 2.25-3.5%, and how marketing support is allocated?

Given the zero litigation history, have there been any disputes, complaints, or informal resolution matters with franchisees that did not result in formal legal action?

The late payment interest rate is specified as 18% per annum—are there any grace periods or payment plan options available before this rate applies?

What were the specific circumstances, business models, or performance metrics of the current 3 franchisees that allowed them to maintain continuous operation without any turnover?

Since the system has not grown beyond 3 units, what capital or operational resources are allocated to franchisee support, training, and field support compared to larger franchise systems?

The personal guarantee requirement applies to owners holding 5% or greater interest—how is ownership structured, and are there strategies to limit personal liability exposure?

Can you provide performance metrics and operational benchmarks for the 3 current units to assess realistic earning potential and market viability?

The franchise agreement requires updating the business to current franchisor standards as a renewal condition—what does this update process entail and what are typical associated costs?

Are there any pending litigation matters, regulatory investigations, or disputes not yet reflected in formal case filings that prospective franchisees should be aware of?