Break Coffee Co

Can you provide details about the 1 litigation case where Break Coffee Co was the plaintiff? What was the nature of the dispute and what was the outcome?

The royalty rate of 12% exceeds the typical 5-6% range for food and beverage franchises. How is this higher rate justified relative to franchisor support and services provided?

Support & Training scores only 59, well below the category average of 83.75-99.0. What specific training programs and ongoing support are provided to franchisees, and how frequently?

Reported median gross sales of $141,628 are substantially below the category typical range of $463,309-$989,787. Can you explain this gap and provide a breakdown of high-performing versus lower-performing units?

What are the 22 non-curable default causes listed in the franchise agreement? This exceeds the typical 15-20 range and significantly limits franchisee options for remedying violations.

The franchise fee of $59,500 exceeds typical range of $30,000-$40,000. What specific items and costs are included in this fee, and how does it compare to competing coffee franchises?

How many units have you renewed beyond their initial 10-year term? What percentage of eligible franchisees exercise the renewal option, and have any chosen not to renew?

The transfer fee of $2,500 is substantially lower than the category typical range of $7,500-$17,500. What is your policy on franchise transfers, and what does this fee cover?

The agreement requires binding arbitration in Hudson County, New Jersey and prohibits class actions. How many disputes have been resolved through arbitration in the past 3 years?

The technology fee of $49/month is below typical range. Is this fee capped, or can it increase? What technology systems and tools are included, and can franchisees use alternative systems?

The agreement specifies 22 termination causes versus the typical 15-20. Can you explain the additional causes and provide examples of franchisees terminated for non-curable defaults?

The renewal conditions require maintaining at least 5 Break Coffee Beverage Machines. How much does each machine cost, and what is the typical total investment required to maintain compliance with this requirement?

What is the rationale for requiring spouse guarantees from all franchisee principals? How frequently do you enforce personal guarantees in case of franchisee default?

You provide Item 19 sales disclosure. Are these figures representative of new units, mature units, or a mix? What is the typical ramp-up period to profitability?

The system has maintained exactly 10 units for 3 years with zero growth. What is your growth strategy going forward, and are you actively recruiting new franchisees?

The non-compete clause is 2 years / 15 miles. How is this enforced, and have you pursued former franchisees who violated these terms?

Late fees of $150 per week plus 18% annual interest apply to overdue payments. How many franchisees have incurred these penalties in the past 2 years?

The agreement requires maintaining a minimum number of active accounts within each territory as a performance metric. What is this minimum number, and what happens if a franchisee falls below it?

Given the limited financial performance data and small system size, can you provide references to 3-5 current franchisees and 2-3 former franchisees for candid discussions?