Can you provide a detailed breakdown of what services and systems are included in the $1,200 monthly technology fee, and how does this compare to what other fast casual concepts charge?
#1
Given the non-compete restriction is only 1 year and 3 miles (below the typical 2 years and 5-20 miles for this category), what protections prevent franchisees from immediately opening competing burger restaurants in adjacent locations after exit?
#2
With only 3 units in operation and no historical closures or terminations to date, what specific support systems and resources exist to help franchisees through the critical first 2-3 years of operation?
#3
The franchise agreement lists 25 non-curable defaults (above the typical 15-23 range). Can you provide the complete list of these defaults and explain which ones could result in immediate termination without a cure period?
#4
What is the typical timeline and cost for a franchisee to renew after the initial 10-year term, given the renewal fee is 50% of the then-current franchise fee?
#5
Can you explain the circumstances under which the franchisor would require spouse guarantees in addition to owner guarantees, and what specific creditworthiness criteria trigger this requirement?
#6
What percentage of Bobby's Burgers units are required to source from franchisor-approved suppliers versus franchisor-operated suppliers, and what are the typical cost markups on these items?
#7
Since the system is only 3 units strong as of 2024, what are the franchisor's specific growth targets and timeline for expanding the system, and how might aggressive expansion affect existing franchisees' territories?
#8
How are territory disputes resolved if the franchisor expands by opening additional units within or adjacent to an existing franchisee's 3-mile radius?
#9
Can you provide details on the 7 renewal conditions mentioned in the agreement, and what percentage of franchisees have successfully renewed their contracts to date?
#10
What specific training and ongoing support are provided, and are there any additional costs beyond the monthly technology fee for accessing these resources?
#11
How are the royalty rate (6%) and ad fund contribution (3%) allocated and tracked, and can franchisees request an audit of these expenditures?
#12
What remedies exist if the franchisor fails to enforce the exclusive territory protection and allows another Bobby's Burgers location to open within your territory?
#13
Given the 25 non-curable defaults and 10-day cure period for monetary defaults, what specific documentation and notice procedures does the franchisor follow before initiating termination?
#14
Can you explain why the investment score (72) falls below the typical range (73-77.25) for this category, and what specific costs may not be reflected in the initial $40,000 franchise fee?
#15
What ongoing fees or mandatory purchases (beyond royalty, ad fund, and technology fee) are required, and how do these compare to competitor fast casual franchises?
#16
If a franchisee wants to transfer or sell their unit, what approval process is required and what percentage of transfer requests have been approved versus denied historically?
#17
How does Bobby Flay or his team provide direct involvement in operational oversight, menu development, or brand marketing given the celebrity association with the franchise?
#18