Given that Decimal has only 1 current unit and 0 units 3 years ago, what is the franchisor's growth strategy and timeline for system expansion, and how many units are in development or signed agreements?
#1
The franchise fee of $30,000 is below the typical range of $31,125-$50,000 for this category. What specific inclusions justify this pricing, and will the fee increase as the system grows?
#2
Why is the transfer fee of $22,500 substantially higher than the typical range of $5,250-$19,500? What approval or administrative process justifies this elevated cost?
#3
The non-compete clause specifies 0 years, which is below the typical 2.0 years for this category. What prevents franchisees from immediately establishing competing businesses after exit?
#4
Can you explain why renewal conditions are limited to 3 items compared to the typical 5.0-8.0 conditions? What evaluation criteria determine renewal eligibility?
#5
With zero litigation history, can you provide references from the single current franchisee regarding their experience with the franchisor, including satisfaction with support and performance expectations?
#6
The agreement includes 16 non-curable defaults compared to only 3 curable defaults. Can you provide a detailed list of these 16 non-curable defaults and examples of how they have been applied?
#7
DFS is identified as the only approved provider for computer hardware, software, recruitment, training, and payroll services. Are there volume discounts available, and can franchisees audit DFS pricing for reasonableness?
#8
What are the specific monthly gross revenue targets referenced in the minimum performance requirements, and what are the consequences for missing these targets?
#9
Binding arbitration is mandatory with class action and jury trial waivers. Can you provide an estimate of typical arbitration costs, and is the franchisor required to pay a portion of these costs?
#10
The renewal fee is $4,500. Is this fee separate from the renewal royalties, and does it apply in addition to other ongoing fees?
#11
Personal guarantees are required from owners. Are these guarantees perpetual, and do they extend beyond the initial term to cover renewal periods?
#12
Given the Risk Factors score of 80 (above the typical 60.0-78.0 range) and Contract Terms score of 70 (above typical 58.0-65.0), what specific factors contributed to these elevated scores?
#13
With Ongoing Fees score of 57 (below typical 62.0-62.0), what explains the lower fee structure relative to comparable franchises in this category?
#14
Can you provide documentation showing how the single current unit is performing against the stated minimum monthly revenue requirements?
#15
What happens if a franchisee is unable to secure DFS services or if DFS ceases operations? Are there alternative approved vendors or contingency plans?
#16
The indemnification clause covers claims alleging franchisor negligence—can you clarify whether franchisees indemnify the franchisor for franchisor's own negligence, or only for third-party claims?
#17
Has the single current franchisee utilized any of the provided support and training resources, and what has their feedback been on the quality and adequacy of ongoing support?
#18