Captain D's

Why is the royalty rate of 4.5% lower than the industry typical range of 5.0-6.0%, and are there plans to adjust this rate during renewal periods?

The ad fund rate of 1.0% is significantly below the typical 2.0-4.0% range—how is national marketing and brand visibility maintained with this lower contribution level?

Can you explain the rationale behind the 20-year initial term and 20-year renewal option (40 years total), which significantly exceeds the typical 20.0-30.0 year total potential term for QSR franchises?

With only 10 specified termination causes compared to the typical 15.0-20.0, what specific breaches or failures justify franchisor termination, and what remedies or cure periods are provided?

The system has declined by 10 units in the past year—are specific factors driving closures, and what support is provided to underperforming locations to prevent further exits?

Can you provide a breakdown of the 21 closures/cessations over the 2022-2024 period by specific reason (e.g., owner retirement, financial underperformance, market saturation)?

How does the protected but non-exclusive territory work in practice—what prevents the franchisor from opening competing Captain D's units nearby?

The Investment Costs score is 46/100, well below typical QSR ranges of 69.0-78.0—what is the typical total initial investment required, including real estate, build-out, equipment, and working capital?

Personal guarantees are required from all 10%+ owners—how are these enforced in the event of franchisee default, and have there been cases where personal assets were pursued?

You require purchases from designated suppliers including McLane Foodservice and Bassham Wholesale—how are pricing and quality monitored to ensure franchisees receive competitive rates?

What percentage of current franchisees have owned their units for the full 20-year initial term, or are most units transferred before term completion?

Given the 2-year/10-mile non-compete clause, how is this enforced, and what happens if a franchisee opens a competing quick-service restaurant outside the 10-mile radius after exit?

The Gift Card Program mentioned in operational control requirements—is this mandatory, and how does it affect franchisee cash flow and accounting?

Can you provide the median and average unit volumes (AUV) for units at different system tenures (e.g., years 1-5, 6-10, 11+) to show profitability trajectory?

With 0% termination rate in the past year, are there franchisees currently in breach of agreement terms, and what is the typical timeline from breach notice to remediation or termination?

How many franchisees have exercised their renewal option at the end of the initial 20-year term, and what percentage do not renew?

The renewal fee equals the transfer fee at $8,750—is this fee required even if the franchisee owns the same unit for another 20 years, or does it apply only to changes of ownership?

What is the typical unit profitability after accounting for royalties (4.5%), ad fund (1.0%), technology fee ($236), and required supplier purchases?

Are there any pending disputes or complaints with franchisees that have not yet escalated to litigation, and how many franchisees have requested dispute resolution in the past 3 years?

The Litigation Data shows zero cases in 3 years across a system of 530+ units—does this reflect actual low conflict, or are disputes resolved through arbitration/confidential settlement clauses before litigation?