What is the minimum franchisee investment required to open a Duff's Famous Wings location, and does this align with the royalty rates and fees structure?
#1
Why does the technology fee of $600/month exceed the typical range for casual dining franchises, and what specific systems and services does this cover?
#2
Given the zero turnover rate over 3 years, how many of the current 5 units are original franchisees versus newer additions, and what is the average tenure of current franchisees?
#3
Can you provide detailed financial performance data on a per-unit basis, including break-even analysis and average unit volume profitability?
#4
The contract specifies 22 non-curable default causes compared to the typical 15-20 range—what are the most commonly triggered non-curable defaults in the franchise system?
#5
How is the $600/month technology fee allocated (e.g., POS systems, delivery platforms, marketing tools), and are there volume discounts or cost reductions as the system grows?
#6
What was the reasoning behind the $22,500 transfer fee, and are there circumstances where this fee can be negotiated or reduced?
#7
The renewal fee is $15,000 with 6-9 months' notice required—has any franchisee chosen not to renew, and if so, what were their reasons?
#8
How does the franchisor enforce the exclusive territory protection, and have there been any encroachment disputes or complaints from franchisees regarding territorial boundaries?
#9
What is the rationale for requiring personal guarantees from all principals and their spouses, and are there any circumstances where this requirement can be waived?
#10
The 18% annual interest on late payments is specified—how frequently do franchisees fall behind on payments, and what collection actions has the franchisor pursued?
#11
Can you explain the supplier approval process and whether the 8 specified supplier restriction requirements limit franchisees' ability to source competitively?
#12
Given the high median unit sales of $3,898,228, what percentage of franchisees achieve or exceed this benchmark, and what is the range of sales performance across the 5 units?
#13
Are there any planned system growth initiatives or new unit development expected in the next 2-3 years that could impact territory exclusivity?
#14
What specific training and ongoing support is included in the system, given the Support & Training score of 100/100?
#15
How does the 2-year, 10-mile non-compete clause apply to franchisees who wish to exit—are there carve-outs or negotiation options?
#16
Why has the system remained at exactly 5 units for 3 years—is this by design, or are there challenges in unit recruitment and development?
#17
What happens if a franchisee fails to renew after the initial 10-year term, and can they sell their business to another operator or remain open independently?
#18
How are disputes with franchisees typically resolved through the mandatory arbitration process, and what has been the cost and timeline for recent disputes?
#19
Can you provide references from all 5 current franchisees, and are they willing to discuss their actual profitability compared to the Item 19 disclosures?
#20