Barberitos

The monthly technology fee of $1,200 is significantly above the typical $200-$500 range for fast casual restaurants. What specific technology systems and services does this fee cover, and is it negotiable for new franchisees?

Why have 11 unit transfers occurred over the past 4 years when the typical transfer rate is 0-5.7%? What are the primary reasons franchisees are seeking to transfer their units?

The termination rate of 2.4% exceeds the typical range of 0-1.1%. Can you provide specific details on the 3 termination cases over the past 4 years, including the causes and outcomes?

Average gross sales of $692,308 are significantly below the typical range of $932,006-$1,901,495. What factors contribute to this lower sales performance, and what is the variance across top-performing versus underperforming units?

The franchise agreement specifies only a 10-year total potential term compared to the typical 20-26.25 years. Why is the renewal period limited, and what is the renewal approval process after the initial 10-year term?

The agreement lists 25 termination causes, exceeding the typical 15-23. Can you provide a complete list of these causes and clarify which are non-curable (allowing immediate termination) versus curable with a cure period?

The 15-day cure period for 9 curable defaults appears quite short. What are these 9 curable defaults, and are there any circumstances where franchisees have successfully cured defaults within this timeframe?

The non-compete clause restricts operating any Southwestern cuisine business offering the listed items within 10 miles for 2 years post-termination. Has this been enforced, and are there documented cases of franchisees challenging this restriction?

What are the specific 9 conditions required for renewal at the end of the initial 10-year term, and what percentage of franchisees typically meet these conditions?

Can you clarify the binding arbitration requirement and the mandatory pre-arbitration mediation process? What is the average cost and timeline for resolving disputes through this mechanism?

The unlimited personal guarantee requirement applies to each principal and their spouse. Are there any circumstances where this guarantee is waived or modified, and what recourse do guaranteed parties have if the business fails?

What has been the trend in unit closures (as distinct from transfers)? The data shows 7 closures over 4 years—are these primarily due to economic conditions, franchisee performance, or other factors?

Territory is described as protected but not exclusive. Can you explain what protections exist against franchisor-operated or company-owned units being opened nearby?

Of the 2 units that ceased operations for other reasons in 2023, what specifically caused these closures, and how often does the 'other' category occur?

The renewal fee is $5,000. Beyond this fee, what additional capital investment or remodeling is typically required to renew the franchise for another 10-year period?

How many franchisees have successfully renewed their franchises at the end of their initial terms, and what is the renewal rate compared to non-renewal?

Are there any pending disputes or claims that have not yet been formally filed, and how many franchisee complaints or inquiries has the franchisor received in the past year?

What support and training resources are included with the franchise, and how are updates or new procedures communicated to franchisees during their term?

Can you provide references from at least 5 franchisees who have transferred their units and 5 who have renewed their franchises to discuss their experiences?

What is the refund or buy-back policy if a franchisee wishes to exit before the 10-year term expires, and are there any liquidated damages clauses?