The franchise fee of 45,000 and transfer fee of 45,000 are both significantly above typical ranges for quick service restaurants. Can you explain the justification for these higher fees compared to comparable franchises?
#1
Your technology fee of 75 per month is notably lower than the typical range of 110-408. What technology services and platforms are included in this fee, and are there any additional technology costs not reflected in this monthly charge?
#2
The system has grown 28.4% in the past year with a 3-year CAGR of 18.5%, both well above typical ranges. What percentage of this growth is from new franchise sales versus organic expansion, and are there growth targets or saturation concerns for specific markets?
#3
The non-compete radius of 20 miles exceeds typical ranges of 5-10 miles. How is this 20-mile restriction enforced, and are there any geographic markets where you've made exceptions to this policy?
#4
Can you provide details on the 5 unit closures in 2024 and the 1 termination? What were the primary reasons for closure, and were any related to operational challenges or franchisor performance issues?
#5
The agreement requires renewal fees equal to 100% of the then-current franchise fee. If your franchise fee increases over 10 years, how would a franchisee's renewal fee be calculated, and what is the average historical increase in franchise fees?
#6
Binding arbitration is required within 10 miles of your Fort Lee, New Jersey headquarters. For franchisees operating in distant states, what are the typical costs and logistics of pursuing arbitration at this location?
#7
You mandate purchase of all food and beverage items solely from franchisor-approved suppliers. Can you provide a list of approved suppliers, their pricing structure compared to market alternatives, and the process for adding new approved suppliers?
#8
The agreement specifies 12 non-curable defaults that can trigger termination. Beyond the typical defaults, what specific operational behaviors constitute non-curable defaults, and how frequently have franchisees been terminated for each type?
#9
Personal guarantees from all principals and their spouses are required. If a franchisee faces financial difficulty, how aggressively does the franchisor pursue personal guarantees, and are there documented cases where spouses were held liable?
#10
Transfer fees of 45,000 are due when a unit changes ownership. What percentage of transfers involve franchisor approval delays, and have any franchisee-initiated transfers been denied or conditioned on additional requirements?
#11
The agreement requires substantial compliance throughout the initial term for renewal eligibility. What specific metrics define 'substantial compliance,' and what percentage of franchisees have been denied renewal due to non-compliance?
#12
With Item 19 financial performance data not being provided, what average unit volumes (AUVs) or profitability metrics can you share for comparable bb.q Chicken locations, broken down by experience level and market type?
#13
The franchise has no litigation history in 3 years. Does this reflect a genuinely low-dispute relationship with franchisees, or are there informal dispute resolution mechanisms that keep matters out of formal proceedings?
#14
The territory is protected but not exclusive. In practice, how often do you open multiple bb.q Chicken locations within the same protected territory, and what restrictions exist on franchisee-to-franchisee competition?
#15
What support and training services justify your 100/100 system health support score, and are there specific areas where franchisees most frequently request additional support beyond the standard program?
#16
The termination clause allows 5 days to cure payment defaults. What percentage of franchisees have received payment default notices, and how many have cured versus been terminated?
#17
Can you provide a breakdown of the 46 net unit growth in the past year by state or region, along with target markets for expansion in the next 2-3 years?
#18
What was the rationale behind the transfer fee matching the franchise fee at 45,000? Are there any circumstances under which transfer fees are reduced or waived?
#19