The franchise fee of $9,500 is substantially lower than the typical range of $30,000-$40,000 for this category. What is included in this lower fee, and are there additional upfront costs not reflected in this figure?
#1
Your royalty rate of 8.0% exceeds the typical 5.0-6.0% range. How does this rate compare to competitors in the senior meal delivery space, and is there a breakpoint where the rate decreases with revenue growth?
#2
The monthly technology fee of $8.4 is significantly below typical fees of $75-$300. What technology systems and support are included, and will fees increase as the system scales?
#3
Your 1-year exit rate of 9.8% exceeds the typical range of 0.0-7.9%. What is the primary reason franchisees are exiting—financial underperformance, personal reasons, or franchisor-initiated terminations?
#4
The termination rate of 2.2% is nearly 4 times the typical range of 0.0-0.6%. What specific performance metrics or contract violations are leading to these terminations?
#5
Item 19 shows Median Gross Sales of $169,000, which is substantially below the typical $463,309-$811,216 range. What is the average unit volume (AUV) after expenses, and what percentage of franchisees achieve profitability?
#6
Your initial contract term is only 3 years versus the typical 7.75-10.0 years. Why is the term significantly shorter, and what are the operational implications for franchisee investments?
#7
The non-compete clause is 1 year versus the typical 2 years, but applies to a 30-mile radius versus the typical 5.0-23.75 miles. How is the 30-mile radius determined—from the franchisee's location, territory boundary, or both?
#8
Post-termination restrictions extend for 18 months in the territory plus 30-mile radius. If a franchisee is terminated, what recourse do they have, and are there scenarios where this restriction would not apply?
#9
The franchise requires upgrades to current standards upon renewal with no cost caps specified. Can you provide examples of required upgrades in recent renewals and their typical costs?
#10
You require 6 designated suppliers with franchisor-approved sources only. Can franchisees negotiate pricing directly, or does the franchisor establish price floors/ceilings for their territory?
#11
What support and training does the franchise provide, given the Support & Training score of 72 is below the typical 83.75-99.0 range for this category?
#12
In 2023, 7 units transferred while 5 closed and 4 were terminated. Can you break down the reasons for these 7 transfers—were franchisees exiting due to profitability concerns or other factors?
#13
Class action lawsuits and jury trials are waived in your dispute resolution clause. Why was mandatory arbitration not included, and what disputes would franchisees need to litigate in Wisconsin?
#14
The transfer fee of $3,000 is below typical fees of $7,500-$17,500. Does this fee include franchisor approval review, and are there scenarios where a transfer would be denied?
#15
What is the current performance breakdown—how many of the 92 existing franchisees are profitable, how many are generating sales below the Item 19 median of $169,000, and what is the average franchisee tenure?
#16
The non-renewal rate is 4.5% annually. For franchisees who choose not to renew, what are the primary reasons—inability to meet renewal upgrade requirements, profitability concerns, or other factors?
#17
Given the 4-year-old system with 92 units, how many franchisees are in their first 3-year term versus renewal phases, and does performance differ between cohorts?
#18
The renewal fee is $1,000 with required upgrades to current standards. Can you provide a sample upgrade cost from recent renewals to help prospective franchisees understand total renewal expenses?
#19
What is the typical time to profitability, and at what point do franchisees typically achieve return on their initial investment based on actual unit performance data?
#20