Atomic Wings

Can you provide detailed information about the 3 unit closures in 2024 and the 2 units that ceased operations? What were the primary reasons for these exits?

The termination rate of 5.0% is significantly higher than the typical 0.0-1.03% for QSR franchises. How many of these terminations were franchisor-initiated versus franchisee-initiated, and what were the specific grounds?

Your 1-year turnover rate of 15.0% is more than double the typical range for QSR franchises. What factors are driving this elevated exit rate, and what steps are you taking to improve retention?

Given the 15.0% closure rate, can you explain the business model and support systems that allow the franchise to still achieve 11.11% net unit growth? What is your strategy for sustainable growth?

The non-compete clause covers 'any food service business specializing in Buffalo wings' within 10 miles for 2 years. How broadly is this being interpreted in practice, and have there been disputes over this definition?

I notice the renewal conditions require 'mandatory refurbishment, upgrade and renovation to current standards with no cost sharing.' What are the estimated costs for a full refurbishment, and how frequently is this required?

The termination clause allows franchisor termination for payment defaults with only a 5-day cure period. Can you provide examples of how this clause has been applied, and what constitutes payment default?

Your Investment Cost score of 81 is above the typical range of 69.0-78.0. What are the total initial investment costs including real estate, equipment, and working capital for a new unit?

Territory is marked as protected but not exclusive. Can you clarify what 'protected' means in practice and provide specific examples of how close existing and new franchises can operate to each other?

The dispute resolution clause mandates arbitration in Prince George's County, Maryland. Can you explain why this specific location was chosen and how this affects franchisees operating far from Maryland?

You require personal guarantees from all principals and their spouses. What happens to these guarantees if the franchise is transferred to a new owner?

The franchise has grown from 15 to 20 units in 3 years while experiencing 9 total exits (5 closures, 3 terminations, 1 transfer). Where are these new units being added geographically, and are they cannibalizing sales from existing franchisees?

Can you provide details on the 2 units that 'ceased operations other' (not closures, terminations, or transfers) in 2023 and 2024? What does this category mean?

Your Risk Factors score of 58 is below the typical range of 60.0-78.0. What specific operational or market risks does the franchisor identify, and how are franchisees supported in managing these risks?

The agreement requires all suppliers to be pre-approved in writing by the franchisor with 8 restrictions. Can you provide a list of approved suppliers and explain what supplier restrictions have been enforced?

The $7,500 renewal fee must be paid with mandatory refurbishment requirements. How many franchisees have chosen not to renew, and was this a factor in their decision?

Franchisees must indemnify the franchisor for all costs and claims arising from their operations. Can you provide examples of indemnification claims that have been made against franchisees?

The franchisor may control maximum pricing where legally permitted. How has this been applied in practice, and have there been pricing disputes with franchisees?

With 0 litigation cases reported, can you explain whether this reflects strong franchisor-franchisee relations or whether disputes are being resolved through the mandatory arbitration clause before becoming formal cases?

The system specifies mandatory hours of operation. What are these hours, and how are they enforced? Can franchisees request modified hours based on local market conditions?