Candy Cloud

Given the advertising fund rate of 4.0% is above the typical range of 1.5-3.0%, how is this additional advertising investment being deployed across the franchise system, and can you provide documentation of advertising expenditures and results?

With average gross sales of $89,002 significantly below the typical range of $468,131-$989,787 for Food & Beverage franchises, what factors explain this performance gap, and do you have financial projections showing when units might reach category-typical sales levels?

The franchise has grown from 1 unit three years ago to 13 units today. What is driving this rapid 135.1% CAGR, and is this growth rate sustainable given market saturation and competition?

Why does the non-compete radius of 25 miles exceed the typical range of 5.0-23.75 miles, and how does this geographic restriction impact franchisee flexibility in the post-franchise period?

The transfer fee of $20,000 exceeds the typical range. Can you justify this premium relative to comparable franchises, and is this fee negotiable?

With 23 termination causes in the franchise agreement (above the typical 15-20), what are the most commonly cited reasons franchisees face termination risk, and how many franchisees have been terminated to date?

Can you provide detailed Item 19 financial performance data showing the breakdown of sales performance across the current 13 units, including revenue ranges, profitability, and unit economics?

Given zero litigation history and zero turnover to date, what dispute resolution mechanisms have been tested, and are there any unresolved conflicts with franchisees that have not yet resulted in formal cases?

The franchise agreement specifies binding arbitration in Winnebago County, Illinois with no appeal rights. How will disputes be handled if a franchisee operates in a different state, and what are the estimated costs of arbitration?

The renewal conditions require meeting 7 specified criteria, and the renewal fee is 25% of the then-current franchise fee (minimum $7,500). Can you provide a complete list of these 7 renewal conditions and detail how often franchisees successfully renew versus failing to meet the requirements?

All franchise owners and their spouses (if married) must personally guarantee the agreement. How does this spousal liability requirement affect access to financing, and have spouses ever been held liable for franchisee defaults?

Can you provide a breakdown of the 13 current units by location, opening date, and current operational status to verify the unit history data and explain which specific markets are performing well?

The advertising fund rate of 4.0% generates approximately $3,560 annually per franchise (at average sales of $89,002). How much of this fund is allocated to franchisor overhead versus direct marketing benefit to individual franchisees?

Given the young age of the system (1 unit in 2022, growing rapidly to 13 in 2025), what infrastructure, training, and support systems are in place to maintain quality control as the system scales?

What specific metrics or performance thresholds must franchisees meet to avoid triggering any of the 23 termination causes listed in the agreement?

The typical initial investment for a Candy Cloud franchise is not specified in the provided data. Can you provide a detailed breakdown of all initial costs including equipment, inventory, real estate deposits, and other startup expenses?

Have there been any instances where the franchisor has enforced the 25-mile non-compete restriction against former franchisees, and are there documented cases or settlements from these enforcement actions?

The post-term restrictions prohibit former franchisees from participating in any 'restaurant or eatery business similar to Candy Cloud.' How broadly is 'similar' defined, and could this restrict former franchisees from operating other candy or beverage concepts?

With 0% termination rate and 0% non-renewal rate to date, what is your retention strategy if the system enters a mature growth phase where unit performance may decline?

Can you provide references from 3-5 current franchisees with units opened at least 18 months ago, including their actual profitability data and whether they would recommend the franchise to others?