Cousins Subs

The monthly technology fee of $550 is above typical industry range ($110-$408). What specific technology services and platforms does this fee cover, and how is this fee justified relative to competitors?

Your termination rate of 4.3% is significantly higher than the typical range of 0.0-1.03% for QSR franchises. Can you provide details on the primary reasons for the 4 terminations in 2024 and whether any involved franchisor-initiated actions versus franchisee defaults?

The franchise agreement identifies 14 non-curable defaults. Can you provide the complete list of these defaults and clarify which violations can result in immediate termination without cure period?

Units have experienced significant exits in 2024 (12 total) compared to prior years. Is this pattern expected to continue, or do you attribute 2024 to temporary market conditions or operational adjustments?

The agreement requires disputes to be resolved in Wisconsin courts with jury trial rights waived. What is your rationale for this venue requirement, and are there circumstances where arbitration or alternative dispute resolution might be available?

Personal guarantees and spouse consent are required from all owners. Can you clarify whether these guarantees survive the initial franchise term into renewal periods?

The franchisee must indemnify the franchisor against losses related to the franchisee's operations. Are there any limitations or caps on indemnification exposure, and are there circumstances where the franchisor shares liability?

Renewal requires 7 conditions including premises remodel to 'current standards.' How are these current standards defined, and what is the typical cost for a remodel renovation required at renewal?

The agreement requires mandatory purchase of Trade Secret Food Products from approved suppliers only. Can you provide a list of these suppliers, typical annual product costs, and the approval process for alternative suppliers?

How many franchisees have chosen not to renew in the past 5 years, and what were the primary reasons cited for non-renewal decisions?

The franchise has grown only 3 units net in 12 months (91 to 94 units) but experienced 12 total exits. How many new unit openings occurred in 2024, and what is the target growth rate going forward?

Can you provide specific operational support details related to the areas claimed as mandatory franchisor control: food product sourcing, equipment specifications, insurance requirements, and accounting systems?

The agreement allows 10 business days to cure payment defaults. If a payment is late on day 11, can the franchisor immediately terminate, or is additional notice required?

For curable defaults with 30-day cure periods, does the franchisor provide written notice specifying the exact violation and cure requirements within the first 10 days?

Have any franchisees obtained legal counsel to negotiate modified terms regarding venue, dispute resolution, personal guarantees, or indemnification provisions?

What percentage of franchisees in the system are currently operating at or above break-even, and what is the average time to profitability reported by franchisees?

The territory is exclusive with encroachment protection. Has the franchisor ever modified or established conflicting territories for existing franchisees, and what dispute resolution process applies?

Can you clarify the renewal fee structure: is the $12,500 renewal fee in addition to the initial franchise fee, or is this a one-time fee at renewal?

Are there any performance requirements (sales targets, customer satisfaction metrics, or operational standards) that must be met to qualify for renewal, beyond the 7 stated conditions?

Given the elevated termination rate, what support or remediation programs does the franchisor provide to franchisees at risk of underperformance or non-compliance?