Duck Donuts

What specific circumstances led to the 1 case filed against the franchisor during the 3-year litigation period, and has it been resolved?

Can you explain the sharp increase in unit closures from 5 in 2023 to 13 in 2024? What were the primary reasons franchisees cited for exiting?

Given that median gross sales of $499,779 fall below the typical range for coffee and bakery franchises, what is the projected profitability and average unit volume (AUV) after expenses?

What percentage of units fall into the bottom quartile sales range of $344,021, and what factors distinguish higher-performing locations?

The franchise agreement allows only 5 days to cure defaults with 23 non-curable defaults. Can you provide examples of non-curable defaults and explain the franchisee's recourse options?

All disputes must be resolved through binding arbitration in Cumberland County, Pennsylvania. How many disputes have been arbitrated, and what were the typical outcomes?

Personal guarantees from principals and spouses are required. Are there any scenarios where this guarantee could be waived or limited?

What specific remodeling, repairs, and redecoration costs should be budgeted for renewal, and are these costs separate from the $7,500 renewal fee?

The franchise does not offer exclusive territory. How does Duck Donuts determine spacing between units, and what protections exist against encroachment?

Of the 13 units that closed in 2024, how many were less than 5 years old, and how many were voluntary closures versus franchisor-initiated terminations?

What support and training programs exist to help franchisees improve sales performance given that many units are operating below the category average?

Can you provide a breakdown of the financial performance data by unit age, location type (mall, street-front, kiosk), and geographic region?

Are there any conditions under the franchise agreement that would prevent a franchisee from transferring their unit to a buyer of their choice?

Given the 2-year, 10-mile non-compete clause, what happens if a franchisee relocates their home or business outside this radius after the agreement ends?

What is the average time-to-profitability for new Duck Donuts locations, and what percentage of franchisees achieve profitability within 3 years?

Does the franchisor have the right to purchase a unit at fair market value or at a discount if the franchisee opts not to renew?

How many of the transferred units in 2023-2024 were sold to existing franchisees versus third parties, and what is the approval process for transfers?

What marketing and advertising support does the franchisor provide beyond the 2.0% ad fund contribution?

Are there any performance benchmarks or sales quotas in the franchise agreement, and what are the consequences of failing to meet them?