The ad fund rate of 1.0% is significantly below the typical 2.0-3.0% range for coffee and bakery franchises. What specific marketing and advertising initiatives does this fund support, and how is it allocated across the system?
#1
Support & Training scored 75, below the typical range of 88.0-100.0 for this category. What specific training programs and ongoing support services are provided to franchisees, and are there additional training costs beyond the initial franchise fee?
#2
Unit growth of 50.0% in the past year is an outlier. What is driving this rapid expansion, and can you provide details on the pipeline for future unit growth?
#3
The franchise has only 3 current units and zero litigation history. How long has the franchise been operating, and how many units were operating 5 years ago?
#4
Termination causes in the franchise agreement total 11 conditions, below the typical range of 14.0-23.0. What specific performance or operational failures trigger franchise termination?
#5
The dispute resolution clause requires binding arbitration in Westchester County, New York. If you operate outside New York, how does this impact your ability to resolve disputes, and what are the estimated costs for arbitration?
#6
Personal guarantees are required from all officers and shareholders, with potential spouse guarantees. Can you clarify the extent of personal liability and whether spouse involvement in the business is mandatory?
#7
Renewal requires meeting 7 specified conditions and a renewal fee equal to 20% of the then-current franchise fee. What are these 7 conditions, and can you provide an estimate of what the renewal fee might be in 10 years?
#8
The franchisor controls minimum pricing, mandates operating hours and days, and requires purchases from approved suppliers only. How restrictive are these controls in practice, and do they allow for local market variations?
#9
With only 3 units in the system and zero exits, how representative is the $1,163,851 average gross sales figure, and which specific unit(s) does this reflect?
#10
The territory is protected but not exclusive. What prevents the franchisor from opening additional Cookies N Cream locations near your franchise location?
#11
Given the very small system size, what is the franchisor's financial stability, and do you have access to audited financial statements or FTC Item 21 information?
#12
What is the composition of the 3 current units (company-owned vs. franchised), and what percentage of franchise revenue comes from royalties vs. other sources?
#13
The non-compete restricts activity to 2 years and 25 miles. After the franchise ends, what specific restrictions apply to opening a competing coffee and bakery business?
#14
With 50% unit growth in one year, how are existing franchisees being supported during this expansion phase, and are there concerns about market saturation?
#15
What is included in the $200 annual technology fee, and does this cover point-of-sale systems, inventory management, or customer data platforms?
#16
Have any franchisees inquired about early termination or exit opportunities, and does the franchisor allow buyouts or transfers before the initial 10-year term expires?
#17
The franchise agreement specifies approval requirements for alternative suppliers. How long does this approval process typically take, and what percentage of franchisee requests are denied?
#18
What training is provided before opening, and how many days/weeks is the initial training program? Are there ongoing training requirements, and what is the cost?
#19
Can you provide references from all 3 current franchisees, including profitability data, actual operating costs, and honest assessments of franchisor support?
#20