Baba Saj

The franchise fee of $55,000 exceeds the typical range for casual dining by approximately $5,000-$25,000. What specific services, training, or support justify this premium pricing compared to competitor franchise systems?

Your technology fee of $50/month is substantially lower than the typical range of $90-$500/month for casual dining franchises. What technology services and systems are included in this fee, and are there any additional technology costs not captured in this figure?

The transfer fee of $27,500 is 50% higher than the typical range. Can you explain the rationale for this elevated transfer fee and whether it covers specific franchisor services related to transferring units to new franchisees?

The contract specifies 22 termination causes, which is above the typical range of 15-20. Can you provide a summary of the specific non-curable defaults that trigger immediate termination without a cure period?

With only 2 units in the system and zero turnover over 3 years, how long has Baba Saj been franchising, and what is your growth trajectory? Are there plans to expand the franchise network?

The agreement requires purchase of 8 categories of items from designated suppliers only. Can you provide a detailed list of these categories and disclose what financial relationships or revenue-sharing arrangements the franchisor has with these designated suppliers?

Your dispute resolution clause requires binding arbitration with American Arbitration Association and includes a class action waiver. What is the average cost and timeline for a typical arbitration dispute, and are there circumstances under which franchisees can pursue litigation in court?

The personal guarantee requirement extends to the franchisee and spouse, covering all monetary obligations and non-competition covenants. Under what circumstances might this guarantee be enforced, and are there any limitations on the franchisor's ability to pursue personal assets?

The agreement specifies a 5-day cure period for monetary and non-monetary defaults. How does the franchisor define 'non-monetary defaults,' and are there examples of situations where this short cure period has been applied?

Renewal terms require payment of 50% of the then-current initial franchise fee ($27,500). If the franchise fee increases significantly before renewal, could a franchisee's renewal cost be substantially higher than anticipated?

The contract states late payments incur a $25/day late fee plus 18% annual interest. Is this late fee applied in addition to or instead of the interest, and has this provision been enforced against franchisees in the past?

Your Risk Factors score of 80 exceeds the typical range of 61.0-78.5 for casual dining. What specific risk factors contributed to this elevated score, and how do they impact franchisee investment security?

The territory is protected but not exclusive, and the non-compete is 2 years/10 miles. Can the franchisor open a company-owned location within your territory, or open another franchise location within 10 miles during your term?

Are there minimum sales performance requirements or volume commitments that could affect renewal eligibility, even though the current agreement specifies none?

With only 2 franchised units currently operating, can you provide contact information for the existing franchisees so I can conduct independent due diligence on their financial performance and operational experiences?

The agreement requires remodeling as a renewal condition. What remodeling standards are specified, and what is the estimated cost range franchisees should anticipate for renewal remodels?

Can you clarify the distinction between the 22 non-curable defaults and the 2 curable defaults? Are some of these termination causes related to performance metrics, and if so, what are the performance thresholds?

The agreement specifies that the franchisor may set advertising methods and content approval. Does this include approval of all marketing materials, and has the franchisor ever withheld approval in a manner that prevented franchisees from executing their marketing plans?