The system grew 72% in the past year (from 43 to 74 units). What specific strategies or market conditions drove this exceptional growth, and is this pace expected to continue?
#1
Can you provide details on the 4 units that exited in 2024 (3 transfers and 1 non-renewal)? What were the primary reasons for these exits?
#2
The non-compete clause extends 3 years and 25 miles, which is longer than typical for this franchise type. What is the rationale for this extended restriction?
#3
Support & Training scores 72, below the typical range of 74-91 for this category. What specific training and ongoing support services are provided, and how frequently?
#4
Contract Terms score 53, below the typical range of 58-65. Which specific contract terms are less favorable compared to industry standards, and why?
#5
Investment Costs score 60 is significantly below the typical range of 75 for this category. What additional costs beyond the $49,500 franchise fee should a franchisee anticipate?
#6
Item 19 shows median gross sales of $241,537 but average of $358,953. What factors account for this wide disparity, and how many units reported financial data?
#7
Of the units that have been operating for 3+ years, what is the average profitability and do most franchisees achieve the reported average gross sales figures?
#8
The renewal condition requires payment of 20% of the then-current franchise fee. If the franchise fee increases significantly, could this create renewal cost uncertainty?
#9
The agreement mandates binding arbitration in Miami, Florida. What happens if a franchisee is unable to travel to Miami for dispute resolution proceedings?
#10
How many of the 74 current units are operating versus temporarily closed or in various states of operation?
#11
Since 2022, 5 units closed or ceased operations while 74 are currently active. What was the total unit count in 2022 compared to your growth projections?
#12
Are there any pending legal disputes, regulatory investigations, or class action discussions among franchisees that should be disclosed?
#13
The technology fee is $433 annually. What specific technology services or systems does this cover, and how is this fee adjusted annually?
#14
System Health scores 80, which is above the typical range of 46-70. What metrics contributed to this higher score and what is the composition of current unit types?
#15
Can you provide references for 8-10 franchisees opened in different years, including at least 2-3 that transferred or did not renew their agreements?
#16
The non-compete restricts 25-mile radius activity. How is this measured and enforced, and are there any documented violations or disputes?
#17
What specific conditions must be met to renew for additional 5-year terms, and have any franchisees been denied renewal despite meeting stated conditions?
#18
Given the 0% termination rate, has the franchisor ever initiated termination proceedings that were later resolved without formal termination?
#19
How does the franchisor define 'system health' given the rapid expansion, and are there quality control or performance standards that could trigger non-renewal?
#20