B-Bop's Franchising Corp.

The transfer fee of $3,000 is substantially lower than the typical range of $5,000-$15,000 for quick service restaurants. Can you explain the rationale for this lower fee and whether it applies to all transfer scenarios?

With zero terminations, closures, and transfers over the past 3 years, what specific factors do you attribute to this perfect retention rate, and how does this compare to your performance before 2022?

Your non-compete restriction extends 20 miles, which is above the typical range of 5-10 miles for this category. Can you explain the business justification for this extended geographic radius?

The franchise agreement lists only 8 termination causes compared to the typical 15-20 for this type of franchise. Which typical termination causes are excluded from your agreement, and why?

Your Risk Factors score of 80 is above the typical range of 60-78. What specific factors contributed to this elevated risk score?

Investment Costs score of 37 is significantly below the typical range of 69-78. Can you provide a detailed breakdown of all startup costs, including real estate, equipment, inventory, and working capital requirements?

You do not provide Item 19 financial performance data. Will you voluntarily provide sample profit and loss statements or unit-level financial information to prospective franchisees?

With only 12 units in the system, how long has B-Bop's been franchising, and what were your unit growth targets for the past 3 years versus actual performance?

The post-term non-compete clause requires franchisees to stay out of any B-Bop's location nationwide for 2 years. How is compliance monitored, and what remedies does the franchisor pursue for violations?

Personal guarantees are required from controlling interest holders. If a franchisee files bankruptcy, will the franchisor pursue the personal guarantee, and under what circumstances?

Can you provide specific examples of how the indemnification clause has been applied in past disputes, and what types of claims franchisees have been asked to cover?

What support and training is provided post-opening, and how frequently do you conduct quality control visits or audits of franchised locations?

Are there any undisclosed litigation matters, regulatory investigations, or disputes with franchisees that have been resolved but not reported in public filings?

How is the exclusive territory defined—by address, radius, street boundaries, or other criteria—and what happens if population density or demographics change significantly during the franchise term?

The renewal fee of $5,000 plus a 10-year renewal term means significant ongoing commitment. What are the approval criteria for renewal, and under what circumstances would you decline to renew?

Given the small system size, what is your financial stability and capitalization, and how do you ensure franchisees have ongoing corporate support if the company faces financial difficulties?

Can you provide references from all 12 current franchisees, and are there any former franchisees who exited the system that I can speak with?

The Ongoing Fees score of 65 is slightly above the typical 60-62 range. Besides the 5% royalty and 3% ad fund, are there any other required fees, assessments, or mandatory purchases?

What is included in the advertising fund, how is it spent, and can franchisees opt out or request an audit of fund usage?

Are there territorial encroachment protections in the franchise agreement, and what remedies do you provide if company-owned or other franchised locations open within your protected territory?