Eiffel Waffle

The franchise fee of $40,000 and transfer fee of $32,000 both exceed typical Quick Service Restaurant ranges. What justifies these above-market fees, and are they negotiable?

Your system grew 81.7% in 3 years (1 to 6 units) but has been flat for the past year. What is your growth strategy for the next 3-5 years, and what percentage unit growth are you projecting?

You list 22 non-curable default causes in the termination clause, above the typical range of 15-20. Can you provide the specific list of these 22 causes and clarify how many are subjective versus objective?

The non-compete zone of 20 miles is twice the typical range. How do you define and enforce this 20-mile radius, and has this led to any disputes with franchisees or prevented franchisee growth?

Support & Training scores 85, below the typical 90-100 range for QSR franchises. What specific training and ongoing support programs do you provide, and how many hours of initial training are included in the franchise fee?

You provide no Item 19 financial performance data. Will you disclose average unit volumes, profit margins, or break-even timelines for existing franchisees, and if not, why?

Given zero litigation in your history, do you have standardized dispute resolution procedures beyond arbitration? Have there been any disputes or complaints not reflected in formal litigation?

What is the typical timeline to profitability for a new Eiffel Waffle location, and what percentage of units have achieved profitability by year 2?

The contract requires mandatory arbitration with a class action waiver. Can you explain why individual arbitration is preferred over other dispute resolution methods, and have there been arbitration disputes?

All suppliers are franchisor-designated with franchisor authority to set pricing and product specifications. What percentage markup does the franchisor earn on supplier products, and how frequently have pricing increases been implemented?

You require personal guarantees from principals and their spouses. Can you clarify what obligations are covered by the personal guarantee, and what happens to spouse liability if one principal divorces?

The renewal clause requires full compliance and no more than 2 prior defaults. How many franchisees have failed to renew due to these conditions, and what percentage of franchisees have renewed versus exited?

Remodeling is a renewal condition. What is the typical cost of required remodeling, and how frequently must units be remodeled during the franchise term?

The 5-day cure period applies to both monetary and non-monetary defaults. Can you provide examples of non-monetary defaults and whether 5 days has proven sufficient for franchisees to cure?

Territory is marked as exclusive and protected. What is your encroachment policy if the franchisor opens a company-owned location or approves a franchisee in an adjacent territory?

With only 6 units currently operating, how long has this system been franchising, and what is the total franchisee count including any closed units?

Are there any pending litigation cases, regulatory investigations, or complaints with state franchise regulatory bodies that are not reflected in the public litigation data?

The technology fee is $250 monthly. What technology systems and services are included, and can franchisees opt out or use alternative systems?