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Your royalty rate of 5.0% is below the category typical range of 6.0-7.0%. Can you explain the rationale for this lower rate and whether it may be raised during renewal negotiations?

Your technology fee of $48/month is substantially lower than the category typical range of $165-$427.50. What services and tools are included in this fee, and is there a plan to expand or increase this offering?

Financial Performance shows median gross sales of $302,240, significantly below the category typical range of $414,271-$1,036,590. Can you provide a breakdown of what factors drive this lower revenue, and what the range of performance looks like across different unit types or locations?

Your Territory score of 50 is well below the category typical range of 75-85, and you offer no exclusive territory protection. How do you prevent franchisor-initiated competition within a franchisee's operating area?

The agreement requires maintaining gross sales at 60% of average levels for consecutive 3-month periods after the first 3 years. What is the average sales level used as the baseline, and what happens if a unit falls below this threshold?

Personal guarantees in your agreement cover unlimited scope for every term. Can you clarify what specific scenarios would trigger personal liability beyond the franchise agreement itself, and whether there are any limits to the franchisor's indemnification claims?

Of the 20 units that exited the system over the past 3 years (4+3+3 closures), can you provide specific reasons for closure and whether any were related to operational challenges, market conditions, or franchisee performance issues?

Your transfer rate of 6.3% is at the upper end of the typical range. Does this suggest a pattern of franchisees wanting to exit, and what is the franchisor's experience with ownership transitions?

The franchise fee is $40,000 with a $12,000 renewal fee and $12,000 transfer fee. Are there any other material costs (build-out, equipment, working capital) not reflected in the franchise fee that prospective franchisees should budget for?

You have zero pending litigation cases. Has there been any litigation in the past that was settled or resolved, and if so, what were the primary issues (e.g., payment disputes, operational standards, territory conflicts)?

Support & Training scores 80, slightly below the category typical range of 81.0-96.25. What specific training and ongoing support are provided, and how frequently are franchisees given access to updated training materials or operational guidance?

Net unit growth has been modest (5 units over one year, with only 8 units added in 3 years). What is your franchisee recruitment strategy, and what barriers, if any, exist to more rapid system expansion?

The non-compete clause is 2 years / 25 miles. How is this enforced in practice, and have there been any disputes or attempted violations by departed franchisees?

Can you provide Item 19 (Financial Performance Representations) data, including the number of units reporting, average operating expenses, and average net profit margins to better understand unit economics?

What percentage of the 116 current units are owned by multi-unit franchisees versus single-unit operators, and does system performance differ materially between these ownership types?

The initial term is 10 years with potential for a 20-year total term through renewals. What are the renewal conditions, and does the franchisor reserve the right to modify terms, fees, or operational requirements at renewal?

You reported zero terminations and zero non-renewals over the past 3 years. Does this mean the franchisor has never terminated a franchisee for cause, or is the low rate attributable to other factors such as franchisees requesting non-renewal before termination could occur?

Of the 13 units transferred over 3 years, what percentage were transferred to existing franchisees (multi-unit growth) versus sold to new franchisees, and how many transfers were initiated by the franchisor versus franchisees?