Of the 15 cases where Barrio Queen was named defendant, what were the primary allegations and outcomes? Have any resulted in judgments against the franchisor?
#1
Of the 8 cases initiated by Barrio Queen as plaintiff, what was the nature of these disputes and what was the franchisor's success rate in these litigations?
#2
Given the $3.9M+ median gross sales reported, what is the typical unit-level profitability (EBITDA or net income) after accounting for the 6.0% total ongoing fees and operating expenses?
#3
The franchise agreement contains 25 termination causes, which exceeds the typical range. Can you provide a detailed breakdown of what constitutes the 17 non-curable defaults that could result in immediate termination without opportunity to cure?
#4
What specific violations would trigger termination in less than 24 hours as referenced in the social media policy provisions, and how frequently have franchisees been terminated for such violations?
#5
Given the non-exclusive territory with no encroachment protection, what is the franchisor's current policy on opening new units near existing franchisees, and have there been disputes about this?
#6
Why has the system remained at 7-8 units for 3 years despite reportedly strong financial performance? What are the franchisor's expansion plans for the next 3-5 years?
#7
With zero documented closures or terminations in the past 3 years, are there franchisees who have voluntarily exited through non-renewal, and if so, what were their reasons for not renewing?
#8
The renewal process requires 120 days' notice and compliance with 9 conditions. Can you provide an example of a franchisee that successfully renewed, and what percentage of franchisees typically renew at the end of their initial 10-year term?
#9
Personal guarantees are required from all shareholders and their spouses. If a spouse is required to guarantee, what happens to that guarantee obligation in the event of death or divorce?
#10
What is the dollar amount and scope of indemnification obligations franchisees must assume? Are there caps on indemnification or does it apply to all franchisor liabilities regardless of fault?
#11
How many of the 23 litigation cases involved franchisees versus other parties such as employees, suppliers, or regulatory agencies? What percentage involved franchise relationship disputes?
#12
The renewal fee is $25,000. Are there additional required remodeling, equipment upgrades, or training costs associated with renewal that franchisees should budget for?
#13
Given the significant litigation history, does the franchise agreement contain a clause requiring disclosure of pending litigation to new franchisees, and when is this disclosure updated?
#14
What support, training, or operational standards does the franchisor provide given the 'Support & Training' category score of 100/100? Can you detail the initial training program and ongoing support provided?
#15
The investment cost score of 50 is notably low compared to typical casual dining. Does this reflect a lower initial investment requirement, and if so, what are the startup costs beyond the $50,000 franchise fee?
#16
Have any of the 8 cases initiated in the past 3 years resulted in judgments, settlements, or injunctions that affect how franchisees operate their units?
#17
Given the 2-year/10-mile non-compete clause, can a franchisee operate a different restaurant concept within 10 miles after their agreement ends, or does the restriction apply broadly to all restaurant types?
#18