The franchise fee of $45,000 is disclosed, but ongoing royalty, ad fund, and technology fees are listed as N/A. Can you provide the complete fee structure including any ongoing percentage-based fees or technology costs?
#1
Your Investment score of 62 falls below the typical range of 75.0 for this category. What explains the lower investment score, and what are the total initial investment costs beyond the franchise fee?
#2
Your Support & Training score of 72 is below the typical range of 74.0-91.0. What specific training and ongoing support does the franchisor provide to franchisees, and for how long?
#3
One litigation case was initiated against the franchisor in the past 3 years. What was the nature of this case, what was the outcome, and has it been fully resolved?
#4
Over the past 3 years, 3 units closed while the system only grew by 1 unit. Can you provide details on why these 3 units closed and whether the franchisor identified any common factors?
#5
Your Renewal Conditions count is 4, which is below the typical range of 5.0-8.0 for this franchise type. What are the specific conditions franchisees must meet to qualify for renewal?
#6
Your Termination Causes count is 8, which is below the typical range of 12.0-21.0. What are these 8 termination causes, and how do they compare to what other franchisors in your category include?
#7
The transfer fee of $5,000 is significantly below the typical range of $5,250-$19,500. How does this low fee affect your approval process for transfers, and do you have other mechanisms to protect system quality during ownership changes?
#8
With no Item 19 financial performance disclosure, can you provide voluntary disclosure of median or average unit volumes, profit margins, or operating costs to help prospective franchisees understand financial performance?
#9
The Contract Terms score of 68 is above the typical range of 58.0-65.0, suggesting more favorable terms. Can you explain which contract terms contribute to this higher score?
#10
You offer 3 renewal options of 5 years each for a 20-year total potential term. What is your typical renewal rate, and how many franchisees have successfully renewed past their initial term?
#11
Given the exclusive territory with encroachment protection, how is territory size determined, and what happens to territory boundaries if a franchisee underperforms during their initial term?
#12
The 2-year non-compete clause has no mileage radius specified. How do you define the geographic scope of the non-compete, and does it apply nationwide or within the franchisee's original territory?
#13
Of the 40 current units, how many are company-owned versus franchisee-owned, and what is the company's growth strategy for the next 3 years?
#14
The system has grown only 2 units over 3 years while experiencing 3 closures. What is the franchisor's explanation for this modest growth, and what initiatives are underway to accelerate unit expansion?
#15
Can you provide the names and contact information for at least 5-10 current and former franchisees so I can conduct reference calls about their actual financial performance and franchisor support experience?
#16
What specific support does the franchisor provide during the first 6-12 months to help new franchisees achieve profitability, and what are the average time-to-profitability metrics for recent franchisees?
#17
The Termination Rate is 0.0%, which is exceptionally low. Does this mean the franchisor has not terminated any franchisees in the past 3 years, or are terminations not being reported in the data?
#18