The termination causes count of 26 exceeds the typical range for fast casual restaurants. Can you provide a breakdown of these 26 termination causes and explain which ones are most frequently cited?
#1
Your average gross sales of $1.98M exceed typical fast casual restaurants by approximately $80K. What geographic and operational factors drive this above-average performance, and is this achievable for new franchisees in different markets?
#2
What was the specific nature of the 1 litigation case initiated against Dos Toros, and how was it resolved? Does this case indicate any systemic operational or legal issues franchisees should be aware of?
#3
The 2022 and 2023 closures (2 units each year) were classified as 'ceased other' rather than terminations or transfers. Can you explain the circumstances of these 4 closures and whether they were franchisee-initiated or franchisor-supported?
#4
The franchise agreement requires binding arbitration in New York City. For a franchisee located on the West Coast, what are the practical cost and logistics implications of resolving disputes under this clause?
#5
Your franchise agreement lists 26 termination causes. How many of these are curable with specified cure periods, and what is the average cure period provided across all curable defaults?
#6
Personal guarantees are required from all guarantors and spouses need not guarantee unless they are owners. Can you clarify the scope of this guarantee and whether it extends to personal assets beyond the franchise business?
#7
The non-compete clause specifies 2 years and 5 miles. How strictly does Dos Toros enforce this non-compete, and are there any industry or geographic exceptions granted to exiting franchisees?
#8
Your franchise maintains control over 5 supplier categories including ingredients and point-of-sale systems. What percentage of a unit's operating costs are typically committed to franchisor-approved suppliers, and is there flexibility for negotiating supplier terms?
#9
The Investment Score of 57 falls below the typical range of 73-77.25 for fast casual restaurants. What specific factors contributed to this below-average investment score, and what are the primary cost drivers?
#10
You require mandatory remodeling as a renewal condition. What are the typical costs and timeline for remodeling, and is financial assistance or extended payment plans available?
#11
The franchise has grown from 18 to 22 units over 3 years. What is your expansion strategy for the next 3-5 years, and are there geographic or demographic markets where you are actively recruiting?
#12
Can you provide the units reporting count for the Item 19 financial disclosure? This clarifies how many units contributed data to the median and average gross sales figures.?
#13
Arbitration requires disputes be resolved within 10 miles of the franchisor's principal business address in New York City. Has this location-specific arbitration clause ever resulted in disputes, and what is the typical cost to a franchisee for participating in arbitration?
#14
The 5-year fee projection is not provided in your disclosure. Can you provide a forward-looking estimate of total royalties, ad fund contributions, and technology fees a franchisee can expect to pay over the initial 10-year term?
#15
Encroachment protection is listed as True, but territory exclusivity is False. Can you define exactly what 'encroachment protection' means in practice and whether other Dos Toros locations can operate within a defined radius of an existing franchisee?
#16
What support and training are provided to new franchisees, and what is the timeline from franchise purchase to restaurant opening? Your Support & Training score of 100/100 is the highest category score—what specific programs achieve this rating?
#17
The franchise agreement specifies a $5,000 renewal fee. Are there any other costs or requirements associated with renewal beyond this fee, and what is the likelihood that a franchisee meeting all renewal conditions will be granted a renewal?
#18