The pending litigation case initiated by FiiZ Drinks as plaintiff involves what type of dispute, and what is the expected timeline for resolution?
#1
Your royalty rate of 8.0% is higher than the typical 5.0-6.0% range for beverage franchises. What justification does the company provide for this premium rate, and are there any performance incentives that could reduce it?
#2
The technology fee of $800 monthly is substantially above the typical range of $75-300. What specific services and systems does this fee cover, and are there options to reduce or eliminate this charge?
#3
Why did unit closures spike to 6 units in 2023 compared to 1 unit in 2022? What were the primary causes of these closures, and what support changes were implemented to prevent recurrence?
#4
Your termination rate of 4.3% is significantly higher than the typical 0.0-0.6% range. What are the most common reasons for franchise terminations, and how many were franchisor-initiated versus franchisee-initiated?
#5
The franchise agreement lists 19 non-curable defaults. Can you provide a detailed explanation of each non-curable default and examples of how they have been enforced?
#6
What is included in the mandatory refurbishment/remodeling requirement for renewal, and what is the typical cost for franchisees to meet renewal conditions?
#7
Can you provide specific details about the franchisor-approved suppliers and pricing controls mentioned in the operational control clause? How much flexibility do franchisees have in sourcing?
#8
How many of the 72 current units are profitable, and what percentage of franchisees are meeting or exceeding the median gross sales of $487,739?
#9
The ad fund rate of 1.0% is below typical rates of 1.5-3.0%. How is this fund allocated, and can franchisees request transparency on spending or opt out?
#10
With 4 units transferred in 2024, what is the typical reason for transfers, and what approval process does the franchisor use for new franchisee approval?
#11
The minimum royalty is the greater of 8% of net sales or $2,500 per month. How many franchisees typically pay the minimum floor, and at what sales level does the percentage become preferable?
#12
Can you clarify whether the ad fund rate of 1.0% is truly the only marketing/advertising obligation, or are there additional mandatory marketing requirements?
#13
For the 2 units that ceased operations via 'other' means in 2024, what specifically caused these exits?
#14
The non-compete clause restricts competition within 10 miles for 2 years post-termination. Has this been enforced, and are there any exceptions for different geographic areas or market conditions?
#15
What support and training are provided, and why does the Support & Training score of 78 fall below the typical range of 83.75-99.0 for this category?
#16
How does FiiZ Drinks define 'net sales' for royalty calculations, and are there carve-outs or adjustments that reduce the royalty base?
#17
Can you provide contact information for at least 10 current franchisees representing different unit ages and geographic locations for reference checks?
#18