Delah Coffee

The royalty rate of 4.5% is below the typical 5.0-6.0% range for coffee franchises—how does this lower rate compare to previous franchisees' expectations, and is there a plan to adjust rates in future renewals?

The $500 monthly technology fee is at the upper end of typical charges—what specific systems and services does this cover, and is it subject to increase during the franchise term?

Unit growth has accelerated to 33.3% in the past year and 58.7% over 3 years, significantly above typical ranges—what is driving this expansion, and are there plans to open additional units?

With zero litigation cases historically and zero unit exits, can you provide details about the support systems and operational practices that have contributed to this record?

The Financial Performance score of 61 exceeds the typical range—are there specific unit performance metrics or sales scenarios included in Item 19 that prospective franchisees should understand?

The franchise agreement requires 10 days to cure payment defaults—what happens if a franchisee cannot meet this timeline, and are there hardship provisions?

Post-term non-compete restrictions cover any business offering similar products or services within 25 miles for 24 months—how strictly has the franchisor enforced this, and are there documented cases?

The agreement requires personal guarantees from all owners and their spouses—what specific obligations do spouses assume, and can this be modified?

All disputes must go to binding arbitration in Alameda County with class action and jury trial waivers—have any disputes or complaints been filed by franchisees, even if resolved through mediation?

Mandatory shop updates are required for renewal—what are the estimated costs and timeline for these updates, and can franchisees choose their own contractors?

Franchisees must purchase from the franchisor, affiliates, or designated suppliers—what percentage of inventory must be sourced from these approved vendors, and what are typical cost impacts?

With only 4 units currently operating, how is the franchisor supporting operations, training, and quality control across the system?

The renewal fee is $5,000 with 8 renewal conditions—what are these conditions, and how many franchisees have successfully renewed to date?

Territory is exclusive with encroachment protection—have there been any disputes or discussions about territory boundaries or potential encroachment?

The transfer fee of $10,000 applies when selling a franchise—does the franchisor have right of first refusal, and what approval criteria do they use?

Item 19 shows median gross sales of $834,648—how many units provided this financial data, what is the range of unit performance, and what percentage of units meet or exceed this benchmark?

With 10 days to cure payment defaults, what support or communication does the franchisor provide before termination proceedings begin?

The franchise has grown to 4 units in 2 years—are all units company-owned, franchisee-owned, or a mix, and how does ownership structure affect the growth trajectory?