Built Custom Burgers

Can you provide details on the 6 litigation cases initiated by the franchisor, including the nature of claims and outcomes?

What are the specific reasons the franchisor was named as defendant in 12 cases? Are there common themes or categories of claims?

Why did 2 of the 3 franchise units transfer ownership in 2024? Were these voluntary sales or structured transfers?

What was the reason for the closure and other cessation in 2022? Was this due to franchisee performance issues or external factors?

The system has only 3 units total with flat growth over 3 years—what is the franchisor's growth strategy and timeline for unit expansion?

Given the non-exclusive territory and lack of encroachment protection, how does the franchisor prevent cannibalization between locations?

The franchise fee of $30,000 is below market—what specific support, training, or equipment does this include compared to competitors charging $35,000-$40,000?

The technology fee of $55/month is substantially below the typical range of $200-$500—what technology systems and ongoing support does this cover?

How are disputes between franchisors and franchisees typically resolved? Can you explain the binding arbitration process and any cases that went through this?

The renewal clause limits franchisees to a single 5-year renewal with no further renewal rights. What happens after 15 years if a franchisee wishes to continue operating?

What are the 8 specific renewal conditions referenced in the agreement? Are there any conditions that might be difficult or expensive to meet?

The termination clause allows cure periods as short as less than 24 hours for certain violations—can you provide examples of violations with such short cure periods?

Personal guarantees are required from all owners and spouses for all obligations—are there any circumstances under which the franchisor will release or limit these guarantees?

General liability insurance is required at $1,000,000 per occurrence/$2,000,000 aggregate—are there additional insurance requirements not listed in the disclosure?

With 6 litigation cases initiated by the franchisor in the past 3 years, what were the outcomes and has the litigation rate increased, decreased, or stabilized?

Are there any ongoing or threatened legal actions, investigations by regulatory agencies, or settlements not yet disclosed?

How many of the 18 total litigation cases involved current vs. former franchisees?

The ad fund rate of 1.0% is below industry standard—how is marketing actually funded and executed at the system level?

What is the franchisor's plan to grow from 3 units, and what support infrastructure exists to handle rapid expansion?

Can you provide copies of Item 19 (Financial Performance Representations) or explain why this is not provided in the disclosure document?