The technology fee of $820 monthly exceeds the typical range for hospitality franchises—what specific services and systems are included in this fee, and how is it adjusted annually?
#1
What accounts for the significant increase in unit transfers (7 in 2024 vs. 5 in 2023 vs. 2 in 2022), and what is the franchisor's process for approving transfer requests?
#2
Why did terminations increase to 4 units in 2024 after zero terminations in prior years—what were the primary causes, and were these franchisor-initiated or franchisee-initiated?
#3
The transfer fee of $5,000 is substantially lower than the typical range of $12,500-$50,000—are there additional costs or conditions associated with transfers that are not reflected in this base fee?
#4
The renewal period of 2 years is significantly shorter than the typical 5-10 year range—how does this impact long-term business planning, and what conditions must be met to qualify for renewal?
#5
With 19 termination causes listed in the agreement compared to the typical 14.5-16, what specific breaches beyond payment defaults trigger immediate termination without a cure period?
#6
The agreement requires purchase of 5 specified systems (CRS, PMS, CCR, Rewards Program, credit card processing) from approved suppliers only—what are the annual costs for these mandated systems, and what recourse exists if a supplier fails to perform?
#7
Item 19 financial performance data is available—what percentage of current units are included in the financial reporting sample, and are there significant variations by location or unit type?
#8
Given the personal guarantees required from owners and spouses, what is the franchisor's track record of pursuing personal guarantees in default situations?
#9
The agreement provides automatic renewal for unlimited 2-year periods—can the franchisor decline renewal at any point, and if so, what is the notice period and what happens to the franchisee's ongoing business obligations?
#10
Why does the system show zero litigation over 3 years when comparable hospitality franchises typically report 1-7 cases—have disputes been resolved through arbitration or mediation instead?
#11
The contract terms score of 65/100 falls below the typical range—what are the most franchisor-favorable provisions that prospective franchisees should understand before signing?
#12
With territory protected but not exclusive, what specific encroachment protections are in place, and has the franchisor opened competing units within existing franchisee territories?
#13
The 5-day cure period for payment defaults is mentioned in the termination clause—what triggers the franchisor to declare a default, and are there any grace periods before the 5-day clock starts?
#14
The system grew from 113 to 121 units in 3 years (7.1% growth)—what is the franchisor's target growth rate, and how many new units are planned for the next 2-3 years?
#15
Since there is no non-compete restriction (0 years / 0 miles), can a franchisee who exits the system immediately open a competing hotel in the same market?
#16
What is included in the franchise fee of $45,000, and are there mandatory initial investments beyond this fee for pre-opening costs (renovations, furniture, FF&E, working capital)?
#17
The renewal fee is listed as N/A—is there a renewal fee charged at each 2-year renewal, and if so, what is the amount or formula used to calculate it?
#18