D Spot Dessert Café

The transfer fee of $25,000 is significantly higher than the typical range of $5,000-$15,000 for Quick Service Restaurants. What justifies this premium transfer fee, and are there circumstances where it could be waived or reduced?

Your total potential contract term of 15 years is notably shorter than the typical 20-30 years for this category. Why is the initial term limited to 10 years, and what are the specific conditions required to qualify for the single 5-year renewal?

The franchise defines 26 termination causes compared to the typical 15-20 for this category. Can you provide a complete list of these termination causes and clarify which ones are within a franchisee's control versus those related to external factors?

Your Investment Costs score of 51 is below the typical range of 69-78 for Quick Service Restaurants. What is the total initial investment required, including all fees, equipment, build-out, and working capital?

The agreement requires exclusive purchasing of cakes from the franchisor or its designee. What percentage of product costs do cake purchases typically represent, and are there any volume discounts or pricing guarantees provided?

Can you explain the 30-day right of first refusal clause in transfer agreements? Under what circumstances has the franchisor exercised this right, and what happens if the franchisor does not exercise it within the 30-day period?

The dispute resolution clause requires binding arbitration in Chicago at either party's demand. How often do disputes arise between the franchisor and franchisees, and what are the typical costs associated with arbitration cases?

Personal guarantees are required from all principal owners and their spouses. If a principal owner divorces during the franchise term, does the non-owner spouse remain liable under the guarantee?

You require franchisees to purchase all products from approved suppliers or the franchisor. Can you provide a list of approved suppliers and clarify the process for approving new suppliers?

Given that current unit count is 0, what is the timeline for franchisee recruitment and unit opening? When do you expect to award the first franchise agreements?

With no operational units currently, how will you provide the required training and ongoing support outlined in your franchise agreement?

The agreement contains 9 renewal conditions including full compliance verification. What specific compliance documentation is required to qualify for renewal, and who conducts the renewal compliance audit?

The operational control clause reserves significant franchisor authority over business operations. Can you provide examples of decisions that require franchisor approval versus those franchisees can make independently?

Your Ongoing Fees score of 65 is slightly above the typical range of 60-62. Beyond the 5% royalty and 2% ad fund, are there any other recurring fees, assessments, or mandatory purchases required?

The non-compete restriction of 2 years and 6 miles applies after termination or non-renewal. Are there any circumstances where this restriction could be enforced for longer periods or wider geographic areas?

If a franchisee requests transfer and the franchisor exercises its right of first refusal, what would be the terms offered to the franchisor versus external buyers?

Are there any circumstances where the transfer fee could be applied multiple times during a single franchise agreement term (e.g., if an owner changes their business structure)?

What support and resources will be provided to help franchisees achieve profitability, given the lower Investment Costs score and the specific profitability benchmarks in the franchise model?