BurgerFi

The system lost 24 units (22.6%) in the past year with a termination rate of 24.4%. What specific performance metrics or violations triggered the majority of these terminations, and are there documented cases where franchisees dispute the termination grounds?

Four cases have been initiated against the franchisor compared to a typical range of 0.0-1.0 cases for similar franchises. What are the subject matters of these cases, and have any resulted in settlements or judgments against the company?

The 3-year unit decline rate is -10.1% while the system has grown to 113 units. Can you provide context on whether the company is rebuilding or continuing to contract, and what turnaround strategies are in place?

Your ad fund contribution rate is 4.0%, which exceeds the typical 1.5-3.0% range. How is this higher ad fund allocated, and can franchisees audit its use or opt out if they conduct their own marketing?

The franchise agreement includes 21 non-curable defaults resulting in automatic termination without notice. Can you provide the specific list of these defaults and examples of how they have been applied in actual terminations?

The termination causes count of 13 falls below the typical range of 15.0-23.0. Does this mean BurgerFi has fewer grounds to terminate compared to similar concepts, or is the lower number due to broader termination language?

With a System Health score of 0 (typical range: 50.0-75.0), what specific metrics define this score, and what remediation efforts is the franchisor undertaking to improve system stability?

The non-compete clause restricts franchisees from any foodservice business 'the same as or similar' to BurgerFi for 2 years within 5 miles. How has 'similar' been defined in disputes, and are there documented cases where franchisees challenged this restriction?

Renewal requires satisfaction of 9 specified conditions including remodeling. What are the estimated costs for remodeling upon renewal, and are franchisees required to pay these costs before renewal is approved?

Can you provide a detailed breakdown of the 20 unit closures in 2024—how many were franchisor terminations versus owner-initiated closures, and what were the primary cited reasons for each?

Personal guarantees are required from franchisees and spouses are required to sign liability documents. Has the franchisor pursued personal guarantees against franchisee spouses in any litigation, and under what circumstances?

The franchise agreement requires franchisor approval for all ingredient, equipment, and supply purchases. Can you provide a list of pre-approved suppliers, and what restrictions are placed on pricing or sourcing alternatives?

With median gross sales of $1,241,071, what is the typical franchisee profit margin after accounting for royalties (5.5%), ad fund (4.0%), and cost of goods sold?

Can you provide a list of the 2 pending litigation cases from the past 3 years that have been resolved, including settlement amounts or judgment amounts that were paid?

Units declined from 106 to 82 in the past year. Of the franchisees who remain, what percentage are meeting performance targets, and how many are currently under performance review or in non-compliance?

The Investment score of 68 falls below the typical range of 73.0-77.25. What specific investment-related factors contributed to this below-range score?

The Risk Factors score is 1, significantly below the typical range of 64.0-80.0. What risk metrics define this extremely low score, and what does this indicate about franchisee financial viability?

Can you explain the rationale for having 'protected' territory with encroachment protection but denying exclusive territory status? How does this hybrid approach affect franchisee competitive positioning?