Arwa Coffee

Given the 200% unit growth in the past year (from 1 to 3 units), what is the franchisor's growth strategy and timeline for additional unit openings?

The royalty rate of 4% is notably lower than the typical 5-6% range for coffee franchises. Is this rate subject to increase at renewal, and under what conditions?

The ad fund rate of 1% is below typical levels. How is this fund utilized, and are there specific marketing initiatives franchisees can expect?

With only 3 operating units, how does the franchisor support franchisees in a small system? What shared resources or group purchasing advantages exist?

The non-compete clause of 3 years and 5 miles exceeds typical coffee franchise standards. What is the rationale, and are there geographic or industry-specific carve-outs?

Item 19 financial performance data is included. Can the franchisor provide details on the average gross sales of $1,092,336 - how many units reported this, and over what period?

The renewal conditions require 50% of the then-current initial franchise fee for renewal. What is the current franchise fee trend, and can you provide examples of renewal fee amounts from recent renewals?

Under the termination clause with 5 curable and 20 non-curable defaults, what are examples of non-curable defaults that would result in immediate termination without cure period?

The dispute resolution clause requires binding arbitration in Dallas County, Texas. Is this mandatory for all disputes, including product quality or training disagreements?

Personal guarantee is required from the franchisee, and spouse guarantee may be requested at franchisor's discretion. Under what circumstances would a spouse guarantee be required?

Why does Arwa Coffee require exclusive purchasing from 16 product categories including coffee beans, spices, and branded merchandise? What are the typical markups on these products?

Given the small system size (3 units), how stable is the supply chain for exclusive products, and what happens if the designated supplier ceases operations?

The technology fee is $100 monthly. What specific technology services, systems, or platforms does this fee cover?

With zero litigation cases on record and a 3-year history, has the franchisor had any disputes with franchisees that were resolved outside of the formal legal system?

The transfer fee is $10,000. Does this cover franchisor approval costs, training for the new franchisee, and any other transfer-related services?

What training and ongoing support is provided to franchisees, and how is this affected by the small number of operating units in the system?

Are there any development or area developer opportunities available, and what are the terms compared to single-unit franchises?

The franchise fee of $35,000 is relatively low for the industry. Does this reflect a strategy to grow the system rapidly, or are there additional costs not included in this figure?

What is the franchisor's financial stability and track record? How long has the company operated its own corporate locations?

The renewal terms require full compliance throughout the initial term. What specific compliance metrics or KPIs are evaluated, and how are they measured?