The franchise fee of $87,500 and transfer fee of $87,500 both exceed typical ranges for hotel franchises—what justifies these higher fees, and are they negotiable?
#1
With only 2 current franchised units down from 3 last year, what is the franchisor's growth strategy and timeline for expansion?
#2
The system experienced a 33.3% unit decline in the past year. What were the specific reasons the unit closed, and what support did the franchisor provide to prevent closure?
#3
Eight litigation cases name the franchisor as defendant—what are the primary categories of these cases (contract disputes, trademark, regulatory, etc.) and what is the status of each?
#4
Two litigation cases are currently pending. What are the nature of these cases and what is the timeline for resolution?
#5
Why does the franchise agreement offer no renewal rights—what happens to a franchisee at the end of the 15-year initial term?
#6
The agreement contains immediate termination for 15 non-curable defaults. What constitutes these non-curable defaults, and do they include issues beyond a franchisee's control?
#7
Personal guarantees are required from all owners with spousal guarantees for financial obligations. Under what specific circumstances would the franchisor enforce these personal guarantees?
#8
Territory is non-exclusive with no encroachment protection. Can the franchisor or another franchisee open competing Dolce Hotels units within your market area?
#9
No Item 19 financial performance data is available. Will the franchisor provide any audited or historical financial performance data from existing units?
#10
The 10-day cure period for payment defaults is very short. How are payment defaults defined, and what flexibility exists if a franchisee faces temporary cash flow issues?
#11
With a System Health score of 0/100 and Risk Factors score of 2/100, what changes has the franchisor made or planned to improve system stability?
#12
The technology fee is $734—what systems does this cover, will it increase annually, and are these services essential or optional?
#13
Given the 33.3% turnover rate, what financial metrics or unit-level performance should a franchisee track to ensure viability?
#14
The franchisor was plaintiff in 3 cases. What were these cases about, and do they indicate disputes with franchisees or external parties?
#15
Are there any class action lawsuits or regulatory investigations involving Dolce Hotels that may not appear in individual case counts?
#16
With no renewal options after 15 years, what happens to brand signage, systems, and customer goodwill—can the franchisee continue operating independently?
#17
What is the typical ROI and payback period for Dolce Hotels franchisees based on the 2 current units, and can you provide historical data from closed units?
#18
The renewal fee equals the transfer fee at $87,500. If a franchisee wishes to continue operating after 15 years, is this fee non-negotiable?
#19
What indemnification clauses require franchisees to cover franchisor liability, and are there limits on the scope or amount of indemnification exposure?
#20