The technology fee of $433/month exceeds the typical range for this category—what specific services and systems does this cover, and how is it calculated?
#1
Your reported median gross sales of $3.35 million significantly exceeds the category average—can you provide breakdown data on whether all units achieve similar sales levels, or if this represents outlier high performers?
#2
The transfer fee of $30,000 is approximately 2x the category average—what restrictions apply to franchisee-to-franchisee transfers, and can this fee be negotiated?
#3
Your system reports zero unit terminations and zero transfers over 3 years—can you explain the reasons some units may have exited in earlier periods, or confirm this is genuinely a new/stable system?
#4
The franchise agreement lists 22 termination causes compared to the category average of 15-20—can you identify which specific breaches allow immediate termination versus those with cure periods?
#5
What exactly triggers the 19 non-curable defaults that allow immediate termination, and how often has the franchisor exercised this right historically?
#6
The 10 renewal conditions exceed typical levels—what are the specific mandatory remodeling requirements and associated costs at renewal?
#7
Can you clarify the operational control provision requiring purchases from franchisor-designated suppliers in 5 categories—which categories and what is the franchisor's markup or profit participation?
#8
The franchise fee of $40,000 and renewal fee of $7,500 represent above-average costs—are there any circumstances under which these fees can be reduced or waived?
#9
Your royalty rate of 4.0% is below the category average of 5.0-6.0%—is this rate locked in for the full 25-year potential term, or does it adjust at renewal?
#10
Item 19 financial performance shows gross sales of $3.35 million—what is the median or average net operating income and what percentage of franchisees achieve profitability?
#11
How many of your current 31 units are company-owned versus franchisee-owned, and what is the performance comparison between the two?
#12
The agreement requires personal guarantees from all owners—are there any circumstances where the franchisor has pursued personal guarantees against franchisees for debt beyond the franchise fee?
#13
Can you provide details on any disputes, complaints, or regulatory actions filed against Buona in the past 5 years, even if not resulting in formal litigation?
#14
The non-compete clause covers 2 years and 10 miles—does this apply both during and after the franchise term, and what activities specifically are restricted?
#15
What support and training does Buona provide, given the 100/100 support score, and are there ongoing training requirements or costs beyond the standard fees?
#16
The system grew from 26 to 31 units in 2 years—what is the pipeline of approved franchisee candidates, and what is the franchisor's growth target for the next 3 years?
#17
Can you explain how the franchisor establishes maximum resale prices and mandatory business hours, and what flexibility exists for franchisees to adapt to local market conditions?
#18
The agreement references indemnification and holding harmless obligations—what specific liability exposure have franchisees faced, and does Buona carry errors and omissions insurance?
#19