Apple Spice

What specific factors drove the 4 unit closures in 2022, and what operational or market changes occurred that led to the stabilization in 2023-2024?

The franchise fee of $49,000 is approximately 22% above the typical range for this category. What justifies this premium, and what additional support or benefits does it include compared to competitors?

The monthly technology fee of $604 exceeds typical range by over 100%. What specific technology services and systems does this cover, and are there opportunities to reduce or modify this fee?

With 32 termination cause provisions in the agreement, which 5-10 are most frequently cited for unit exits, and what do closed franchisees cite as their primary reasons for failure?

The non-compete clause extends 3 years and 25 miles, both above typical ranges. How strictly is this enforced, and have there been any disputes or litigation regarding former franchisees operating competing businesses?

Financial performance data shows median gross sales of $727,090. What percentage of units achieve or exceed this threshold, and what is the typical profit margin after all ongoing fees and operating expenses?

The agreement requires binding arbitration in Salt Lake City, Utah. How many disputes have gone to arbitration in the past 3 years, and what have been the outcomes for franchisees?

Personal guarantees are required from all owners with 5% or greater interest, including spouses. Can this requirement be negotiated, and what has been franchisor enforcement history?

Approved supplier restrictions apply to 10 categories. What is the markup on items purchased from designated suppliers compared to open market pricing, and are there volume discounts available?

The renewal fee equals 50% of the then-current franchise fee. For a franchisee renewing after 10 years, how would this be calculated, and what are the specific conditions that could cause renewal denial?

Late fees of $25 per day plus 18% annual interest apply to overdue payments. How many franchisees have incurred these fees in the past 12 months, and at what point does the franchisor take termination action?

The system has zero terminations and zero non-renewals to date. What is the franchisor's actual enforcement history regarding contract breaches, and how many franchisees have been terminated since the brand's inception?

Territory is exclusive, but with 32 total units and declining system size, what is the average territory size, and how many units operate in the same metropolitan area or region?

What specific operational standards must be maintained to qualify for renewal, and have any franchisees been denied renewal despite having no violations?

The agreement requires approval for all equipment and food supplier purchases. What is the approval process timeline, and have there been instances where franchisees' preferred suppliers were rejected?

With 10 categories of approved suppliers, can franchisees negotiate preferred vendor agreements directly, or must all purchases go through franchisor-designated sources?

The 2022 closures included 4 unit closures and 2 transfers. Were any of these units in the same geographic area, and does the franchisor have data on whether transfers involved ownership changes or were internal restructurings?

What is the average franchisee tenure for the 32 current units, and how many franchisees have been with the brand for longer than 5 years?

Dispute resolution requires binding arbitration with class action and jury trial waivers. Has the franchisor used arbitration to defend against franchisee claims, and what types of claims have been arbitrated?

The Contract Terms score of 55 falls below the typical range. What specific contract provisions are most favorable to the franchisor, and which are most favorable to franchisees?