The franchise fee of $75,000 is significantly above the category average of $36,250-$51,225. What specific value, training, or support justifies this premium pricing compared to competitors?
#1
The franchise currently has zero operating units. How long has the franchise been operating, and what is the timeline and strategy for unit development?
#2
Financial Performance scores 40/100, well below the typical 56-60 range. Why is Item 19 financial performance data not provided, and what financial metrics should prospective franchisees expect?
#3
Support & Training scores 74/100, below the typical 77-90 range. What specific training programs and ongoing support are included, and are there additional costs beyond the stated fees?
#4
The initial term of 5 years is shorter than the typical 9.25-10 years for technology franchises. What is the rationale for this shorter initial commitment period?
#5
With a minimum royalty of $600 per month regardless of revenue, how is this structured for new units in their initial ramp-up phase?
#6
The franchise agreement includes immediate termination for 16 types of default with only 1 curable default allowing a 30-day cure period. What specific violations trigger immediate termination?
#7
Post-term non-compete restricts business within 50 miles for 2 years. How is this radius measured, and does it apply to online or remote business activities?
#8
The agreement requires personal guarantees from franchisees and their spouses. Are there any circumstances under which personal guarantees can be released or limited?
#9
All disputes require binding arbitration with waivers of class action and jury trial rights. What are the typical arbitration costs, and who bears these expenses?
#10
Franchisees can renew a maximum of 2 times for 15 total years. What happens at the end of the term if a franchisee wishes to continue operations?
#11
The franchise agreement requires purchasing products and services only from franchisor-approved suppliers across 8 categories. What is the markup or margin structure, and how are approved suppliers selected?
#12
Investment Costs score 71/100, below the typical 74.5-75.0 range. What is the total estimated initial investment including all fees, inventory, equipment, and working capital?
#13
With zero current units and no historical financial performance data, how can prospective franchisees evaluate the viability and profitability of this franchise system?
#14
Ongoing Fees score 64/100, slightly above the typical 62.0% range. Beyond the 6% royalty, 1% ad fund, and $250 technology fee, what other recurring fees or assessments may apply?
#15
The franchisor has filed zero litigation cases as either plaintiff or defendant over 3 years. Is this because the franchise is new, or is there a policy to resolve disputes through arbitration rather than litigation?
#16
What is the current financial standing and capitalization of CyberGlobal, and how is the company funded to support franchisee operations and growth?
#17
The technology fee is $250 monthly. What specific technology systems, software, or platform access does this fee cover, and how frequently are these systems updated or changed?
#18
Late payment penalties include a $100 fee per occurrence plus 18% annual simple interest. Are there any circumstances under which these penalties are waived or reduced?
#19
With exclusive territory protections in place, how is territory size determined, and what recourse exists if the franchisor encroaches or approves a competitor within the protected area?
#20