Freshslice Pizza

The franchise has 12 pending litigation cases with the franchisor as plaintiff in 10 of them. What is the nature of these 10 cases where the franchisor is the plaintiff, and what specific remedies is the franchisor seeking?

What are the 2 cases where the franchisor is named as defendant, and what claims are being made against the franchisor in those cases?

Given that all 12 litigation cases are currently pending, what is the expected timeline for resolution, and have any preliminary rulings or judgments been issued?

The transfer fee of 55,000 is 3 times higher than the typical range for casual dining franchises (5,000-18,000). What justifies this elevated fee, and is it negotiable?

Average reported sales of 394,000 are significantly below the casual dining category average of 1.2-2.7 million. Can you provide a breakdown of which units reported these figures and whether this represents a recent franchise or a struggling location?

You charge no royalty fees (0%) and no advertising fund fees (0%), which is unusual for casual dining. How do you fund ongoing franchisor support, marketing initiatives, and system-wide advertising?

The franchise fee of 25,000 is below the typical 30,000-50,000 range. Does this lower fee reflect the absence of royalty and ad fund payments, or are there other cost reductions built into the franchise model?

Your non-compete clause restricts franchisees to 5 miles, which is below the typical 7.5-15.0 mile range. What is the rationale for this shorter distance, and how do you prevent encroachment in neighboring territories?

The franchise agreement requires mandatory mediation followed by binding arbitration with class action waivers. Have any disputes gone to arbitration in the past 3 years, and what were the outcomes?

Personal guarantees are required from all directors, officers, shareholders, partners, or members with unconditional liability for 'all present and future amounts.' Can you clarify what obligations extend beyond the initial franchise agreement term?

Modernization is listed as a condition for renewal, along with a renewal fee up to 5,000. What specific modernization investments have been required of existing franchisees, and what was the average cost?

All products must be purchased from the franchisor or franchisor-approved suppliers. Can you provide a detailed list of approved suppliers and the pricing structure for each product category?

The franchisor may direct pricing to be charged by franchisees. How frequently has pricing been mandated in the past 2 years, and do you provide franchisees with pricing guidelines or recommendations?

With 0 current units, 0 units 1 year ago, and 0 units 3 years ago, is this a newly launched franchise system? If so, what is your timeline for unit development and market entry?

Can you provide references from at least 5-10 operating franchisees (or former franchisees if current units don't exist) that prospective buyers can contact to discuss their operational and financial experiences?

Given the high number of pending litigation cases involving the franchisor as plaintiff, what is the franchisor's enforcement policy regarding franchise agreement violations, and how often are terminations pursued versus negotiated settlements?

The franchise agreement includes a protected territory with encroachment protection but is marked as non-exclusive. Can you clarify what exclusivity means in this context and under what circumstances the franchisor might open competing units?

What is the initial contract term and total potential term length (including renewal options)? The agreement does not specify these critical dates.

Does the Item 19 financial performance disclosure include data from any actual operating franchisees, or does it reflect company-owned units only? If franchisor-owned units, how many are in operation and in what markets?

What happens to franchise fees and transfer fees if litigation is resolved unfavorably against a franchisee—are there any refund, credit, or adjustment provisions in the franchise agreement?