Dave's Hot Chicken

The technology fee of $500 monthly is significantly higher than typical for quick service restaurants—what specific services and systems does this cover, and is it subject to annual increases?

Can you provide details on the 2 litigation cases initiated against the franchisor? What were the allegations, outcomes, and current status?

Your 3-year compound annual growth rate of 36.5% far exceeds typical franchise growth—what factors are driving this expansion, and how sustainable is this growth rate?

With a 0.0% turnover rate in the past year, are there any units that are underperforming but have not yet been formally terminated or transferred? What is the process for addressing struggling locations?

The franchise fee of $40,000 exceeds the typical range—what additional value or services justify this premium compared to similar quick service restaurant franchises?

Your renewal conditions count of 5 is below the typical range of 7-9—what are the specific renewal conditions franchisees must satisfy, and how strictly are they enforced?

The transfer fee of $20,000 is significantly above the typical range—what does this fee cover, and are there circumstances where it could be waived or negotiated?

With the 2-year, 10-mile non-compete clause, what restrictions apply if a franchisee's lease is not renewed or location becomes unavailable?

Can you explain the single closure recorded in 2023 and the 3 units marked as 'ceased other' in 2024—what circumstances led to these exits?

Are there any pending or threatened litigation matters not yet formally filed that prospective franchisees should be aware of?

How are the 5 transfers recorded in 2024 handled? Are these franchisee-to-franchisee transfers, franchisor-facilitated transfers, or franchisee exits?

Given the requirement for all direct and indirect owners and spouses to sign continuing guaranties, how much personal liability exposure should a franchisee anticipate?

What is the minimum commercial general liability insurance coverage required, and has this requirement increased over time?

For renewal, franchisees must pay 50% of the then-current initial franchise fee ($20,000 minimum)—if the franchise fee increases significantly, could renewal fees exceed $20,000?

The agreement provides 5 days to cure non-payment and 30 days for other defaults—can you clarify what happens to a franchisee's business operations during these cure periods?

What are the 20 specified non-curable defaults, and how often have franchisees been terminated for violations of these clauses?

How does the franchisor support units in achieving profitability, and what is the average unit volume or sales range for existing units?

Are there any geographic markets or regions where Dave's Hot Chicken has experienced slower growth or higher exit rates than the system average?