Aroma Joe's

Why is the royalty rate of 8.0% higher than the typical 5.0-6.0% range for coffee and bakery franchises, and how does this compare to your direct competitors?

The franchise fee of $25,000 is significantly below the typical range of $35,000-$45,000—what explains this pricing strategy and how is the franchisor covering initial support costs?

Can you provide details on the 12 transfers that occurred over the 3-year period (4 in 2022, 3 in 2023, 5 in 2024)—were these voluntary sales or franchisor-facilitated transitions, and what was the average time to sell a unit?

The non-compete clause of 1 year and 3 miles is narrower than typical (2 years and 5-25 miles)—what protections prevent franchisees from competing in adjacent territories immediately after exit?

What are the specific details on the 18 non-curable defaults in the termination clause, and can you provide examples of situations where franchisees have been terminated for these violations?

The total potential term of 10 years is half the typical 20-year range—do franchisees have any renewal negotiation rights, and under what conditions can the franchisor choose not to renew?

Binding arbitration in Portland, Maine is required for all disputes—what are the typical costs and timelines for arbitration claims, and why was this specific location chosen?

Personal guarantees are required from all ownership holders and their spouses—can you provide details on how many franchisee guarantees have been called upon in disputes?

With zero litigation cases on record, are there any pending complaints with state regulators or better business organizations that may not be reflected in court filings?

How are the 3.5% ad fund contributions used, and what marketing initiatives are franchisees receiving in return for this above-average advertising fee?

Can you detail the financial support provided during the initial build-out phase, given the relatively low franchise fee of $25,000?

What is the breakdown of the 120 current units between company-operated, franchised, and any other ownership structures?

Of the 8 units added in the past year, how many were new franchises versus transfers or acquisitions, and what is the average unit volume for new franchises in their first full year?

The territory is non-exclusive with no encroachment protection—has the franchisor opened new units within 3 miles of existing franchisees, and if so, how did this impact existing unit performance?

What remedies are available to franchisees if the franchisor breaches the franchise agreement, given that arbitration is mandatory and binding?

Can you provide the median and average unit volumes for the units reporting sales figures, to assess whether the $593,780 median represents a typical or outlier performing unit?

How many of the reported sales figures in Item 19 are from units that have been in operation for more than 2 years versus newer units?

What happens to non-renewal franchisees' intellectual property rights and ability to use the Aroma Joe's brand name after the 10-year term expires?

Are there any territorial expansion plans that might affect franchisee value, and how many territories are still available for franchise development?

Given the cure periods of 10-60 days for defaults, what support does the franchisor provide to help franchisees cure violations, particularly related to quality or brand standards?