Bento Sushi Franchise, Inc.

What specific business conditions or events triggered the mass closure of 159 units in 2022, and how did they impact franchisee profitability?

The royalty rate of 10.0% is significantly above the typical 4.5%-6.0% range for casual dining franchises. How does this compare to competitor franchise systems, and what justifies this higher rate?

With a 3-year CAGR of -13.24%, what is the franchisor's growth strategy to stabilize and expand the system going forward?

Can you provide detailed financials or an Item 19 earnings disclosure showing median and average gross sales for operating units to assess unit economics?

The transfer rate of 24.6% is unusually high. What percentage of these transfers are franchisor-approved versus franchisor-denied, and what are the primary reasons franchisees request transfers?

Why does the franchise agreement limit the initial term and total potential term to only 3 and 6 years respectively, compared to typical 10-15 year initial terms in casual dining?

Given the short 3-year initial term, how much flexibility does a franchisee have to recover their initial investment before the franchise can be terminated or not renewed?

The territory is non-exclusive with no encroachment protection. Can the franchisor open additional Bento Sushi locations within your territory, and if so, under what circumstances?

What specific support and training does the franchisor provide during the initial period, given that the support/training score of 85 falls below the typical range of 90.0%-100.0?

The agreement requires all food and packaging purchases from Wonderfield Distribution and all operating tablets from the franchisor. What are the markups or pricing terms on these required purchases compared to third-party alternatives?

Can you provide references from franchisees who have exited in the past 3 years to understand their reasons for closure or transfer?

The post-term non-compete restricts 'Asian style foods, sushi, fresh fish products, and steamed foods' for 2 years within 15 miles. How broadly is this interpreted, and are there any exemptions?

With a termination rate of only 1.6%, most exits are voluntary. What is the primary reason franchisees close or transfer their units based on post-exit surveys or interviews?

Late payment penalties include a 10% late fee plus 15% annual interest. What documentation or notification procedures exist before these penalties are assessed?

The franchise agreement allows immediate termination for 17 specific defaults without cure period. Can you provide the complete list of these defaults and examples of past terminations triggered by each?

All disputes must go to binding arbitration in Buffalo, New York with class action prohibited. What are typical costs and timelines for franchisees pursuing arbitration against the franchisor?

Why was the $5,500 transfer fee set at this level, and does this cover the franchisor's actual costs in processing a franchise transfer?

Given no minimum performance standards are required, under what circumstances would a franchisor terminate a franchisee for underperformance?

Can you explain how the 24.6% transfer rate aligns with the franchisor's stated strategy, and whether this indicates successful franchise transitions or franchisee dissatisfaction?

What percentage of the 64 current units are profitable, and among those that closed between 2022-2024, what was the average time to profitability before closure?