Benny's Franchising LLC

Can you explain the justification for a franchise fee of $50,000 when the category average is $35,000-$40,000, and what additional value or support does this higher fee provide?

Why is the transfer fee set at $25,000 compared to the typical range of $8,750-$20,000 for this type of franchise, and what specific franchisor costs does this cover?

How do you explain the significant gap between your system's median gross sales of $543,391 and the category median of $780,498-$1,815,074? What factors contribute to this lower performance level?

Can you provide a breakdown of why average unit volumes are $664,560 when the category average is $932,006-$1,901,495? Are there specific operational or market challenges affecting unit economics?

Given that the franchise agreement requires binding arbitration in Virginia for all disputes, how would a franchisee located outside Virginia manage dispute resolution, and what are the associated costs?

Can you clarify what specific restaurant or eatery operations are prohibited under the 24-month, 10-mile post-term non-compete, and how broadly 'eatery business operations' is defined?

The personal guarantee is required from franchisees and their spouses—can you explain the circumstances under which spousal assets could be at risk, and are there any exceptions or limitations?

How have you attracted and retained franchisees given that transfer fees of $25,000 are substantially higher than industry norms, potentially limiting exit options?

With zero litigation cases reported, can you explain how disputes have been handled when they arise, and what types of issues have been resolved through arbitration versus informally?

Since the system has grown from 27 units to 32 units with zero closures or terminations, what is your average franchisee retention rate, and what percentage of units have been continuously operating since their opening?

What support and resources justify a perfect 100/100 Support & Training score, and how do these services specifically help units achieve profitability given the lower-than-average sales volumes?

Can you provide the breakdown of the 3-unit growth—specifically, how many of these were new franchisees versus transfers or expansions, and what is your typical franchisee onboarding timeline?

How does the 5-day cure period for defaults work in practice, and what types of non-monetary defaults trigger termination even with the 'reasonably required' extension language?

Given the 20-year total potential term (initial 10 + 1 renewal of 10), what triggers non-renewal, and can you provide examples of franchisees who chose not to renew?

The territory is protected but not exclusive—can the franchisor open competing Benny's locations within 10 miles of a franchisee's territory, and under what circumstances would this occur?

Are the financial performance figures (Item 19) based on actual franchisee reporting, or are they estimates? How many of the 32 current units reported their data?

What are the investment costs that generated the 83/100 Investment Score (above the typical 73-77 range), and does this reflect your higher franchise and transfer fees?

Can you explain the specific risks that produced an 80/100 Risk Factors score, and how does the franchisor mitigate these risks for franchisees?