BNI Franchising, LLC

The royalty rate of 20% is more than double the typical range for this franchise type. What justifies this significantly higher rate, and how does it compare to competitor systems in the BNI space?

You have 1 pending litigation case. What is the nature of this dispute, when was it filed, and what is the expected timeline for resolution?

Of the 4 total litigation cases on record, what were the other 3 cases about, and were they all resolved in the franchisor's favor?

The contract term is 5 years with no renewal options stated. Under what circumstances, if any, can a franchisee renew or extend their agreement beyond the initial 5-year term?

The non-compete radius of 75 miles is significantly larger than typical. How is this distance measured from the territory, and could it effectively prevent a franchisee from working in their local business community post-exit?

The technology fee of $36/month is notably lower than the typical range of $100-500/month. What does this fee cover, and are there additional technology costs not reflected in this monthly fee?

One franchisee was terminated in 2024. What were the reasons for this termination, and does it indicate any systemic issues with franchise operations or franchisor relations?

Item 19 financial data shows an average gross sales of $343,922 but a median of $262,018. What accounts for this significant spread, and what percentage of units fall below the median?

How many of the current 187 units are owned by franchisees who have held their franchises for less than 5 years?

The contract includes minimum annual royalty fees with a 3% late payment fee plus 18% annual interest. How many franchisees have incurred late payment penalties in the past 2 years, and what was the average penalty amount?

The non-compete clause requires binding arbitration in Charlotte, North Carolina. If you are located elsewhere, what are the typical costs of participating in arbitration proceedings in that location?

The franchise agreement requires spousal limited guarantees in addition to the franchisee's personal guarantee. What specific liabilities are covered by the spousal guarantee?

You require encroachment protection within protected territories but state territories are not exclusive. What is the practical difference for franchisees, and what recourse exists if the franchisor places another member near your territory?

With zero non-renewal rate and only 1 termination in 2024, why does the contract include no renewal options? What happens to a franchisee's business relationship after 5 years?

The total potential term of 5 years is the lowest in the category. Is this intentional, and what is the franchisor's expectation regarding franchisee tenure and long-term commitment?

The transfer fee is $15,000. Does this fee apply if a franchisee transfers the business to a family member, and are there any circumstances where this fee is waived?

Post-term non-compete applies for 2 years within a 75-mile radius. If the franchisor places a new franchisee in your former territory during this 2-year period, what recourse do you have?

The dispute resolution clause mandates binding arbitration with the American Arbitration Association in Charlotte, North Carolina, with required mediation first. What is the average cost and timeline for such proceedings based on recent disputes?

What support and training does the franchisor provide during the initial term, and how does this support change or discontinue after the 5-year term expires?