Given that gross sales ($590,917 median) are substantially below the category average of $817,213.75, what factors contribute to this performance gap and what support does the franchisor provide to improve unit sales?
#1
Can you provide a breakdown of the 8 transfers that occurred over the past 3 years? Were these primarily due to owner retirement, relocation, or other factors?
#2
The transfer rate of 8.2% exceeds typical rates for quick service restaurants—do you track reasons for these transfers and is this trend increasing, stable, or decreasing?
#3
What specific strategies or interventions does the franchisor employ when a unit's sales fall below the median of $590,917?
#4
With territory being non-exclusive and no encroachment protection, how does the franchisor prevent multiple franchisees from operating in close proximity to each other?
#5
Can you clarify the definition of 'competitive business' referenced in the post-term restrictions, particularly regarding bagel-related products sold through other channels or formats?
#6
The 2-year, 10-mile non-compete applies to 'any other franchisee location'—how is the proximity enforced if franchisee locations are not territorially defined?
#7
What is the franchisor's policy on unit relocation or expansion beyond the initial location?
#8
Are there any Item 19 performance representations that break down sales by unit type, location category, or franchisee tenure that could explain the below-average sales figures?
#9
How many of the 49 current units are owned by franchisees versus franchisor-operated, and do franchisor-operated units perform differently than franchisee units?
#10
What training and ongoing support programs are provided, and how frequently do franchisees receive coaching on operational improvements or sales optimization?
#11
The termination rate is 0.0%—is this due to strong franchisee compliance or a franchisor policy favoring remediation over termination?
#12
Can you provide details on the 2 closures in 2022 and the 1 closure in both 2023 and 2024? Were these due to owner choice, economic conditions, or franchisor decisions?
#13
What are the 'other ceased' units listed in the exit data (2 in 2022, 1 in 2023, 1 in 2024), and do these represent permanent closures or temporary suspensions?
#14
Given the binding arbitration requirement with an individual basis waiver of class actions, how would multiple franchisees with similar disputes pursue claims?
#15
What are the specific operational defaults (beyond payment and insurance) that trigger the 30-day cure notice for termination, and how are these documented?
#16
Can you explain the ongoing fees structure, particularly why the 'Ongoing Fees' score of 65 is higher than the typical range for this category?
#17
Are there any technology or point-of-sale system requirements, and if so, are there mandated vendors or can franchisees choose their own approved providers?
#18
What is the franchisor's policy on menu modifications, pricing decisions, and promotional activities at the unit level?
#19