Cleanest Restaurant Group

Given the franchise's rapid growth (120% in one year), what specific support systems are in place to maintain quality control and prevent operational issues that might emerge as the system scales?

The ad fund rate of 3.0% exceeds the typical range of 1.0-2.0%. How is this additional 1.0-2.0% fund allocated, and what specific marketing or advertising initiatives does it support for franchisees?

With only 11 current units and zero closures, how long has the franchisor been operating? What is the franchisor's operating history prior to franchising, and how does that experience inform franchise support?

Average unit volumes of $3.3 million significantly exceed typical range for this category. Can the franchisor document how recent franchisees (opened in 2023-2024) are achieving these sales levels, or do these figures primarily reflect older, more established units?

The franchise agreement lists 25 termination causes, above the typical range. Can the franchisor provide a detailed breakdown of these causes and clarify which relate to non-payment, non-compliance, and other categories?

What specific conditions must be met to renew the franchise after the initial 5-year term? The agreement mentions 8 renewal conditions—can the franchisor detail these and clarify the cost of any required upgrades or maintenance?

The minimum weekly royalty requirement begins in month 13. What is this minimum amount, and how does it compare to the 8% royalty rate? What happens if actual revenue doesn't support this minimum?

Late payment interest is set at 18% per annum. Can the franchisor clarify the payment terms (weekly, monthly, quarterly) and what constitutes a 'late' payment?

All disputes require mediation in New York County followed by binding arbitration, with waivers for class actions and jury trials. What is the typical cost and timeline for franchisees who have pursued disputes through this process?

Personal guarantees are required from all owners and spouses for all franchise obligations. Can the franchisor clarify what specific obligations are covered by the guarantee and whether this extends to future renewals and amendments?

How many franchisees from the current 11 units have renewed, and how many are approaching their first renewal date? What has been the franchisee satisfaction rate with renewal terms?

The agreement requires participation in advertising cooperatives 'when established.' Have such cooperatives been established, and if so, how are these costs determined and allocated?

What is the franchisor's current staffing and infrastructure (training, support, operations) relative to the 11-unit system, and what expansion plans are in place if the franchise grows significantly?

Can the franchisor provide references from at least 3 franchisees who have operated for the full 5-year initial term, including their financial performance and experience with support and enforcement?

The non-compete is 2 years and 25 miles post-termination. How has this been enforced historically, and are there examples of disputes over non-compete violations?

Transfer fee is $15,000 and renewal fee is $3,000. Are there any other fees, assessments, or required capital investments for renewals or transfers not listed in the franchise fee section?

Item 19 financial performance data is disclosed. What is the confidence level in these figures—how many units reported, over what time period, and have these been audited or verified by third parties?

Given zero litigation historically, what specific dispute resolution or complaint processes exist for franchisees, and how are franchisee concerns typically resolved outside formal litigation?

What percentage of the initial franchise fee covers training, and how many training hours are provided? Are ongoing training costs separate, and if so, at what price?

Can the franchisor provide a detailed breakdown of the $200 monthly technology fee, including what systems/services are provided and whether this increases annually?