Given the franchise fee of $11,250 is significantly below the typical $31,125-$50,000 range for this category, how does this lower investment level compare to the actual startup costs you anticipate franchisees will incur?
#1
The transfer fee of $4,500 is substantially lower than the typical $5,250-$19,500 range. What restrictions or approval requirements apply to franchise transfers, and does the lower fee reflect reduced administrative costs or a deliberate pricing strategy?
#2
Your system experienced 200.0% unit growth in the past year (from 2 to 6 units). What is the reason for this rapid expansion, and do you have projections for continued growth rates over the next 3-5 years?
#3
The franchise has recorded zero exits, terminations, and transfers with a 0.0% turnover rate. How many complete fiscal years of operating history does the current unit base have, and how does this relate to the zero-exit data?
#4
Your contract specifies 25 termination causes, above the typical 12-21 range for this category. Can you provide a detailed list of these 25 causes and clarify which are classified as curable versus non-curable defaults?
#5
The 25 non-curable default provisions allow immediate termination without a cure period. What specific scenarios trigger immediate termination, and have any franchisees been terminated under these provisions?
#6
Regarding the minimum monthly royalty requirement that triggers default after 6 consecutive months of non-payment, what is the dollar amount of this minimum threshold?
#7
Your non-compete clause covers 'photography and art businesses offering similar products or services' within 2 years and 10 miles. How broadly does Eyemazy interpret 'similar products or services,' and have you enforced this provision against former franchisees?
#8
The franchise specifies mandatory refurbishment, redesign, remodel, and upgrade requirements as a renewal condition. What is the estimated cost of compliance with these requirements, and do you provide support or financing options?
#9
The agreement requires all owners to personally guarantee the franchisee's full compliance and allows 18% annual interest on late royalty payments. What percentage of franchisees have incurred late payment penalties, and what is the average number of late payments per franchisee annually?
#10
Your Territory score of 90 is above the typical 50-85 range for business services franchises. What encroachment protections are provided, given that encroachment protection is marked as False?
#11
Since your system has only 6 current units with zero litigation history, what specific legal and operational disputes, if any, have been resolved informally between franchisees and the franchisor?
#12
With such recent rapid growth from 2 to 6 units, what is your franchisee recruitment strategy, and what are the typical unit economics and break-even timelines based on existing franchisee performance?
#13
Your Contract Terms score of 53 falls below the typical 58-65 range. Which contract provisions do you consider most restrictive or favorable to the franchisor, and are any provisions open to negotiation?
#14
The Ongoing Fees score of 59 is below the typical 62.0 benchmark. Beyond the 9% royalty and 1% ad fund, are there other mandatory fees, and do these compare favorably to similar franchises in photography or art services?
#15
Your Termination Causes Count of 25 is elevated. How many of these causes relate to customer service or performance standards, versus compliance or financial issues?
#16
Has the franchisor ever initiated termination proceedings against any franchisee, and if so, what were the outcomes and reasons?
#17
What is the franchisor's approval process for franchisee transfers, and how does the $4,500 transfer fee relate to the administrative cost of processing and approving transfers?
#18