Chili's Grill & Bar

The technology fee of $2.75 monthly is substantially below industry norms ($90-$500). What specific technology services and systems are included in this fee, and are there additional technology costs not captured in ongoing fees?

Your franchise fee of $60,000 exceeds the typical range for casual dining. Can you provide a detailed breakdown of what is included in this fee compared to competitors, and is it negotiable?

The transfer fee of $25,000 is at the high end of the range. What conditions must be met for a franchisee to transfer their location, and what franchisor approval process is involved?

With a royalty rate of only 1.25%, how does the franchisor generate revenue to support franchisee operations, marketing, and system development?

There is 1 pending litigation case against the franchisor. Can you provide details about the nature of this case, the parties involved, and the current status?

Your non-compete clause restricts franchisees from any restaurant business in casual dining nationwide for 2 years post-termination. How is 'casual dining' defined, and have franchisees successfully challenged this scope?

The initial term of 20 years with a 20-year renewal option (40-year total) is significantly longer than typical. What are the renewal conditions, and can franchisees renegotiate terms during renewal?

Your agreement includes 15 non-curable defaults with immediate termination and no cure period. Can you provide examples of these non-curable defaults and explain why some are not subject to a cure period?

Personal guarantees are required from Managing Owners and Operating Partners. Are there any circumstances where this personal guarantee can be released, and what is the franchisor's track record of enforcing these guarantees?

The agreement requires purchasing all food items from franchisor-approved suppliers exclusively. What is the approval process for suppliers, how many approved suppliers exist for key items, and what pricing mechanisms are in place to protect franchisees from price gouging?

The territory is non-exclusive with no encroachment protection. Can the franchisor open additional Chili's locations within my service area, and what recourse would I have if this occurs?

Your system lost 6 units in the past year (0.5% decline). Can you break down how many were due to closures versus voluntary exits, and what were the primary reasons cited by departing franchisees?

The renewal fee equals 100% of the then-current franchise fee ($60,000 currently). How often has the franchise fee been increased historically, and what is the projected fee at renewal in 20 years?

Required renovations are mentioned as a renewal condition. What renovation costs should a franchisee budget for at renewal, and who bears these costs?

Your royalty rate of 1.25% is significantly below the typical 4.5-6.0% for casual dining. Are there any additional revenue-sharing arrangements, marketing assessments, or other fees not captured in the ongoing fee structure?

The franchisor has established maximum and minimum prices for menu items. How restrictive are these pricing controls, and do they account for regional cost-of-living differences?

With a 2.0% three-year turnover rate below the typical 4.0-16.35%, what is the primary reason for this stability, and are there underlying factors that mask unit struggles?

The agreement allows the franchisor to establish supply requirements and controls. Have there been any disputes with franchisees over supply mandates or pricing, and what is the franchisor's profitability from supply-chain relationships?

What support and training does the franchisor provide given the System Health score of 69 (above typical range), and how does this translate to franchisee profitability?