Broken Yolk Cafe

The 1 litigation case filed in the past 3 years - what were the specific allegations, parties involved, and final outcome? Was the franchisor involved at all?

Transfer Rate of 7.5% is above typical range - can you explain the circumstances of the 6 transfers in 2022 and 2024, and whether the franchisor had approval authority?

Termination Rate of 2.5% is above typical range - what were the specific reasons for the 1 termination in 2024? Were there specific compliance issues or performance failures?

What was the cause of the 2 unit closures in 2024? Were these franchisor-forced closures or voluntary closures by franchisees?

The Franchise Fee of $20,000 is significantly below industry average ($30,000-$40,000) - is this promotional pricing, or does it reflect lower startup complexity?

Royalty Rate of 4.0% and Ad Fund Rate of 1.0% are below typical ranges - are these permanent rates or do they increase after an initial period?

Gross Sales figures ($2.7M-$3.0M average) are 2.7-3.2 times higher than typical Food & Beverage franchises - can you explain what drives these exceptional sales volumes?

The 20-year Initial Term and 20-year Renewal Options are double the typical 7.75-10 year terms - what is the rationale for such lengthy terms?

Renewal Conditions Count of 6 is below typical (7-9) - what specific conditions must franchisees meet to renew, and are there any that could create renewal challenges?

Can you provide details on the single 1-year pending non-renewal case in 2024? What is the status and expected resolution timeline?

How is the $5,000 Transfer Fee calculated and justified compared to competitors charging $7,500-$17,500?

What happens at the end of the 20-year term if a franchisee does not renew - are there transition requirements or post-franchise restrictions?

The Non-Compete clause is 2 years / 10 miles - are there documented cases of franchisees violating this, and what enforcement actions have been taken?

Given the elevated termination rate, what are the most common reasons franchisees are terminated? Can you provide aggregated data from the past 3 years?

The system shows net growth, but with 3 closures/terminations and 7 transfers in recent years - what percentage of original franchisees from 3 years ago are still operating?

Are there any class action suits, regulatory investigations, or multiple related claims bundled into the reported 1 litigation case?

What support and training (reflected in the 100/100 category score) is included at no additional cost versus what requires additional fees?

Does the Item 19 disclosure include data on franchisee profitability, or only gross sales figures? What is the typical profit margin for a Broken Yolk unit?

How many of the 40 current units are company-owned versus franchisee-owned, and has company ownership percentage changed over the past 3 years?

Are there regional variations in sales performance, closure rates, or termination rates that prospective franchisees should consider when selecting a territory?