Champs Chicken

The system shows 431 units in 2022 declining to zero units by 2023. Can you explain what caused this dramatic contraction and provide the specific circumstances of the 72 unit exits (36 closures + 36 ceased other)?

Why does the current unit count show only 1 unit in 2025 after the 2022-2023 contraction? Is the franchise actively recruiting new franchisees or in a rebuilding phase?

Your royalty rate of 3.0% is significantly below the typical 5.0-6.0% for quick service restaurants. Is this rate permanent, or could it increase after an initial period?

The transfer fee of $2,500 is substantially lower than typical transfer fees of $5,000-$15,000. What services and approvals are included in this transfer process?

Your territory is marked as protected but not exclusive, and there is no encroachment protection. Can the franchisor or other franchisees open competing units near my location?

The non-compete clause specifies 2 years but shows 'N/A miles.' How will the geographic scope of the non-compete be determined if you do not renew or if your franchise is terminated?

Renewal requires 7 specified conditions including 'restaurant renovation.' What are the estimated costs and specific requirements for renovations to qualify for renewal?

The agreement requires purchase of 5 categories of proprietary products from designated suppliers including food preparation equipment and branded packaging. Can you provide a breakdown of the costs and profit margins the franchisor receives from these required purchases?

Personal guarantees and spousal consent are required. If the franchisee defaults, what specific obligations and claims could the spouse be held liable for under the indemnification clause?

The termination clause allows termination with a 10-day cure period for material breaches. Are there any material breaches for which no cure period is provided (immediate termination grounds)?

Given the zero litigation history, can you provide references from current or former franchisees from the period before the 2022-2023 system contraction to discuss their experiences?

The initial 10-year term is longer than typical for QSR franchises. What happens to improvements, equipment, or leasehold improvements I make during the term if the franchise is not renewed?

The support and training score of 87 falls below the typical 90.0-100.0 range. What specific training and ongoing support services are included during and after the initial ramp-up period?

What financial reporting or item 19 disclosures does the franchise provide, and why is item 19 not included in your franchise disclosure document?

The investment costs score of 81 is above typical range. What is the estimated total investment required to open a new location, and how is this broken down between franchisor fees, real estate, equipment, and working capital?

Can you clarify the franchise fee structure: is the $25,000 franchise fee the only upfront payment to the franchisor, or are there additional startup fees for training, technology, or site selection?

The risk factors score of 80 exceeds the typical range. What specific operational or market risks does the franchisor identify for franchisees in this system?

Of the 72 units that exited in 2022, how many were due to franchisee financial distress versus voluntary exit, and were any franchisees offered buyout terms or conversion options?

What is the renewal fee of $7,500, and does this fee apply to both the first renewal and subsequent renewals, or does it change based on system conditions?

Are there any circumstances under which the franchisor can unilaterally change the royalty rate, territory, product sourcing requirements, or other material terms during the initial term or renewal periods?