Can you provide clarification on why the Ongoing Fees score of 60 falls below the typical range of 61.0-62.0 for fast casual restaurants, and what specific fees or fee structures are driving this?
#1
The franchisor has zero units currently and has had zero units for the past 3 years. What is the timeline for opening the first franchise unit, and what milestones or capital raises need to occur before franchising begins?
#2
Given that no units are currently operating, how will the franchisor support franchisees operationally, and do existing corporate locations serve as training or operational models?
#3
The Termination clause specifies 19 non-curable defaults versus only 5 curable defaults. Can you provide a detailed list of all non-curable defaults and examples of situations that would trigger immediate termination without opportunity to cure?
#4
What specific failures related to 'POS system access' trigger the 3-business-day cure period mentioned in the termination clause, and who bears the cost if the franchisor's systems are at fault?
#5
Personal guarantees are required from all owners and spouses. If a franchisee files for bankruptcy, what specific obligations remain personally guaranteed, and can the franchisor pursue spouses' personal assets?
#6
The indemnification clause requires franchisees to indemnify the franchisor against losses and damages. What specific scenarios would trigger indemnification obligations, and are there caps on these obligations?
#7
The agreement includes a $250 monthly technology fee. What technology services, systems, and updates are included in this fee, and what happens if the franchisor discontinues or significantly changes these services?
#8
With territory protection but not exclusivity, how does the franchisor define 'encroachment,' and under what circumstances would the franchisor permit another Doner Shack location to operate near an existing franchisee?
#9
The renewal fee is $5,000 and transfer fee is $10,000. Are these fees negotiable, and what renewal and transfer conditions must be met beyond fee payment?
#10
How many franchise applications or commitments have been received to date, and what is the franchise sales pipeline?
#11
What corporate support functions are fully staffed and operational (training, marketing, supply chain, IT, etc.), and what functions will be added as the system grows?
#12
Has the franchisor operated or currently operate any corporate-owned Doner Shack locations? If so, what are their financial performance metrics, and are these disclosed to franchisees?
#13
The non-compete is 2 years and 5 miles. Does this apply if the franchisor terminates the franchise, or only if the franchisee voluntarily exits or is terminated for cause?
#14
What are the detailed requirements for the 30-day cure period for certain defaults, and what documentation or actions satisfy these cure requirements?
#15
If a franchisee wishes to renew after the initial 10-year term, what changes to fees, royalties, or system requirements might apply?
#16
Given the franchisor has no operating history in the franchise system, what financial statements and operational data can be provided regarding the concept's viability in corporate operations?
#17