Fantastic Sams Development Agent Program

The royalty rate of 40% is significantly higher than the typical 6-10% for this franchise type. What specific services, support, and value-add justify this substantially elevated ongoing fee structure?

Can you provide detailed information about the 2 pending litigation cases, including the nature of the disputes, parties involved, and expected resolution timeline?

What were the circumstances surrounding the 1 unit termination in 2023? Was this franchisor-initiated or franchisee-initiated, and what were the specific breach or default issues?

The system has maintained only 4 units since 2023 with no growth. What is the franchisor's growth strategy, and how many units do you project to recruit in the next 3 years?

Of the 10 total litigation cases, what are the primary dispute categories (e.g., non-payment, non-compete violations, misrepresentation, performance standards)?

The franchise fee of 55,000 exceeds typical ranges. Does this fee include all initial training, technology setup, marketing materials, and initial inventory, or are there additional costs?

With 5 cases initiated against the franchisor, what were the key allegations, and have any resulted in judgments, settlements, or consent decrees that required operational changes?

The non-compete clause restricts competition within 5 miles for 2 years. How is this enforced, and have there been litigation cases related to non-compete violations?

Given the 25% termination rate, what are the 20 non-curable defaults listed in the agreement, and how frequently does the franchisor enforce termination for each?

The agreement requires binding arbitration in Wilmington, Delaware. What is the estimated cost for franchisees to pursue arbitration claims, and are there any fee-shifting provisions?

Can you provide the names and contact information for the existing 4 franchisees so I can conduct independent reference checks on their experience and satisfaction?

The franchise has a 10-year initial term with 1 five-year renewal option for a 15-year maximum term. What renewal standards must a franchisee meet, and has the franchisor ever denied renewal?

The agreement includes personal guarantees from owners and potentially spouses. In the 5 litigation cases initiated by the franchisor, how many involved enforcement of personal guarantees?

What specific training and ongoing support is provided to justify the high royalty rate, and how many hours of support can a franchisee expect in years 1, 2, and ongoing?

Item 19 (Financial Performance) is not included in the disclosure. Can the franchisor provide audited financial statements or earnings claims for operating franchisees?

The territory is protected but not exclusive, with no encroachment protection. Can you clarify the exact geographic boundaries of each territory and whether the franchisor can place another franchisee nearby?

What were the specific reasons for the 5 cases initiated by the franchisor, and what percentage were for non-payment versus other contract breaches?

The agreement contains 24 termination causes. Can you provide a ranked list of the most commonly cited causes for termination among current and former franchisees?

The Transfer Fee is listed as N/A. What happens if a franchisee wants to sell their business or transfer their franchise agreement to a new owner?