The franchise fee of $50,000 is above the typical range for fast casual restaurants. What specific value or services justify this premium compared to competitors?
#1
Your total potential contract term of 40 years is significantly longer than the typical 20-26 year range. What are the renewal fee amounts for each subsequent 10-year renewal period?
#2
The non-compete period is 1 year and 5 miles, below the typical 2-year standard. Has the franchisor experienced issues with former franchisees competing within this limited scope?
#3
What specific operational reasons led to the 4 unit closures in 2022 and 2024? Were these underperforming locations or external circumstances?
#4
Can you provide details on the 1 terminated unit in 2023? What default triggered the termination and how quickly was it implemented?
#5
Your system health score of 85 is above typical—what metrics drive this high ranking? Is this related to the strong unit growth rate?
#6
The Financial Performance score of 64 is above typical range. How many franchised units reported data for the Item 19 financial performance disclosure, and what was the reporting rate?
#7
Given the binding arbitration requirement with class action waiver, can you provide examples of disputes that have been arbitrated and their outcomes?
#8
The 20 non-curable defaults in the termination clause include what specific violations? Can you provide examples of defaults that have triggered immediate termination?
#9
For supplier purchasing requirements, which items are proprietary and must be purchased from designated suppliers versus approved suppliers?
#10
What pricing policies has the franchisor implemented regarding required purchases from approved distributors, and how are these adjusted annually?
#11
The transfer fee is $20,000. Beyond franchisor approval, what are the specific conditions or requirements for unit transfers between franchisees?
#12
With 3 transfers completed in the past year, what is the average time required for franchisor approval of a transfer application?
#13
Can you clarify the distinction between the 4 'Ceased Other' units in 2022 and 2 in 2024? What circumstances fall under this category?
#14
Personal guarantees are required from all owners with 10% or greater ownership. Are spouse guarantees enforced even if spouses have no operational role?
#15
What happens to the non-compete obligation if a franchisee is terminated for cause versus allowed to exit at term end?
#16
Investment score of 62 is below typical for this category. What are the primary cost drivers in the total initial investment, and how has this changed over the past 3 years?
#17
With a 1.4% annual turnover rate, how does this compare to your target retention rate and what support programs address franchisee retention?
#18
Are there geographic clusters where closures or transfers have been concentrated, or are exits distributed evenly across your franchise territory?
#19