Given the franchise system has only 5 units and is less than 2 years old, what is the franchisor's growth strategy and timeline for expanding the unit base?
#1
Why does the Investment Costs score fall to 0, significantly below the typical range of 59.0-81.0? What specific investment information is missing from the disclosure documents?
#2
Can you provide a detailed breakdown of the $35,000 franchise fee and explain what services and support are included for this amount?
#3
What do the 2 pending litigation cases involve, and what is their current status? Are these cases expected to impact franchisee operations or the franchise system's stability?
#4
The franchise offers no renewal options after the initial 20-year term. What happens to a franchisee's investment and business at the end of year 20 if the franchise agreement is not renewed?
#5
Why is the renewal fee the same as the franchise fee ($35,000)? Is this fee required regardless of business performance or only if the franchisor consents to renewal?
#6
What conditions, if any, must be met to qualify for franchise renewal? Are there performance standards or facility upgrade requirements tied to renewal eligibility?
#7
The non-compete clause specifies 0 years and 0 miles post-termination. Can a franchisee immediately open a competing extended stay hotel after their agreement ends or is terminated?
#8
With territory marked as protected but not exclusive, what specific encroachment protection is guaranteed, and under what circumstances could the franchisor add competing units within your territory?
#9
What is the annual technology fee of $734 used for? Does it cover property management systems, reservation platforms, marketing tools, or other services?
#10
Can you provide contact information for the 5 current franchisees so they can be interviewed about their experience, unit performance, and support received?
#11
What is causing the pending litigation with the franchisor as defendant in 2 cases? Are these disputes with franchisees, regulatory agencies, or third parties?
#12
Since there are zero terminations and transfers to date, what are the franchisor's documented termination procedures and grounds for termination specified in the franchise agreement?
#13
The royalty rate is 5.5% and ad fund is 3.5% totaling 9% in ongoing fees. Are these percentages of gross revenue, net revenue, or room revenue, and what is excluded from the calculation?
#14
What Item 19 financial performance data is available for ECHO Suites or other Wyndham extended stay brands that could benchmark expected unit economics?
#15
Given the franchise system's infancy with 5 units, how long has the franchisor been operating its own company-owned ECHO Suites locations, and what is their performance?
#16
What support, training, and marketing assistance is provided during the 20-year initial term versus what is provided in renewal periods (if renewal is offered)?
#17
Are there mandatory capital improvement requirements or facility refreshes required during the 20-year term, and what are the estimated costs?
#18
The agreement requires personal guarantees from all entity owners and spouse financial guarantees. What specific claims or damages could trigger enforcement of these guarantees?
#19
What happens to franchisees who choose not to renew after year 20, and does the franchisor have the right to take over the location or operate it as a company-owned property?
#20