The technology fee of $800/month is significantly higher than the typical range of $200-$500/month for this franchise category. What specific services and systems does this fee cover, and is it subject to annual increases?
#1
All reported sales metrics (bottom quartile at $433,964, average at $641,867, median at $729,149) fall below typical ranges for fast casual restaurants. Can you explain the factors contributing to these lower sales figures and what support is provided to improve performance?
#2
The franchise agreement allows for a total potential term of 40 years (10 + 3 × 10 year renewals), which exceeds the typical range of 20-26.25 years. What are the conditions and costs associated with each renewal period, particularly any fee adjustments?
#3
The renewal conditions include a fee equal to 25% of the then-current franchise fee. How frequently has this renewal fee been assessed historically, and are there any circumstances under which it could be waived or reduced?
#4
There are 18 non-curable defaults that result in immediate termination. Can you provide the complete list of these defaults and clarify what constitutes a breach in each category?
#5
The franchise agreement requires personal guarantees from all owners holding 20% or more ownership interest, with potential spouse guarantee requirements. Under what circumstances would a spouse be required to guarantee, and what are the liability limitations?
#6
Operational control requires purchasing approved products only from the franchisor or designated suppliers. Are there price controls or competitiveness requirements, and can franchisees request approval of alternative suppliers?
#7
The system currently has only 3 units with zero units existing one year ago. What is the franchisor's growth plan and timeline for unit expansion, and how long has this franchise system been operating?
#8
With a 10-day cure period for monetary defaults and 30-day for non-monetary defaults, can you provide examples of what constitutes a monetary versus non-monetary default in your franchise agreement?
#9
The indemnification clause covers the franchisor, affiliates, and their officers. What is the scope of liability excluded from indemnification, and are there any caps on indemnification obligations?
#10
The transfer fee is $10,000. Are there any other approval or transfer-related costs, and what are the franchisor's approval criteria for unit transfers?
#11
Given the below-average sales performance across all quartiles, what is the average unit volume (AUV) the franchisor projects for new franchisees, and what support programs exist to help underperforming units?
#12
The non-compete clause is 2 years within 5 miles. Are there circumstances where this could be extended geographically or temporally, and how is compliance monitored and enforced?
#13
Zero litigation cases exist for this franchisor. Is this because the franchise system is new, or does it reflect a longer operational history? How long has the franchisor been operating franchised units?
#14
What is the average unit cost including build-out, inventory, equipment, and working capital beyond the stated $35,000 franchise fee?
#15
Are there mandatory marketing or promotional spending requirements beyond the 1.5% ad fund contribution?
#16
The franchise agreement scores 70 for Contract Terms (above the typical range of 60-65). Which specific contract provisions most heavily favor the franchisor, and are any subject to negotiation?
#17
Given the small unit count and early-stage system, what specific training, ongoing support, and field support does the franchisor provide, and how are these services funded?
#18