The technology fee of $605 monthly is above typical for quick service restaurants—what specific technology services and tools are included in this fee, and is it subject to increases?
#1
Sales have declined from 29 units to 20 units (-31%) over 3 years with a 40% turnover rate in the past year alone. What does the franchisor attribute to this contraction, and what changes have been made to address unit closures and terminations?
#2
Of the 8 units that closed in 2025, how many were franchisor-initiated terminations versus voluntary closures? What were the primary reasons cited?
#3
The termination rate of 15.4% is substantially above industry norms. Can you provide details on the 4 units terminated in 2025, including specific breaches, cure periods offered, and outcomes?
#4
The franchise agreement lists 25 termination causes—can you identify which causes are non-curable and result in immediate termination versus those allowing 15-30 day cure periods?
#5
Average unit volumes of approximately $350,000 are less than half the typical range for quick service restaurants. What is the median or range of unit volumes, and do you have success data for different location types or markets?
#6
The agreement allows for 99 consecutive 10-year renewal periods (1,000 years total potential term). In practice, what percentage of franchisees renew at the end of their initial 10-year term?
#7
What specifically is required for renewal remodeling to 'current system standards,' and what is the estimated cost and timeline for such remodels?
#8
Two litigation cases were initiated against the franchisor in the past 3 years. What were the nature of these cases, and what were the resolutions or settlements?
#9
The non-compete clause covers 'acai bowls, pitaya bowls, kale bowls, fruit smoothies, and similar products' within 10 miles for 2 years post-exit. How has the franchisor enforced this clause, and are there examples of disputes?
#10
Franchisees are required to purchase from approved or designated suppliers. Can you provide the list of required suppliers, typical markup margins, and the process for supplier approval?
#11
Operating hours and days are controlled by the franchisor—what flexibility exists for franchisees to adjust hours based on local market conditions or seasonality?
#12
The renewal fee is $5,000. Are there additional costs for relocation, remodeling, or brand updates beyond this fee?
#13
Can you provide an Item 19 financial performance statement and clarify how many of the 20 current units are included in the average gross sales figure of $349,733?
#14
What encroachment protections exist? The data indicates encroachment protection is false—does this mean the franchisor can open new units within your territory?
#15
Transfer fees are $7,500. What approval process does the franchisor require before permitting a franchise sale to a new owner?
#16
Personal guarantees are required from all principals and spouses covering all agreement terms. Are there circumstances under which the franchisor would consider releasing personal guarantees?
#17
The dispute resolution clause mandates binding individual arbitration with class action and jury trial waivers. Has the franchisor previously required arbitration in disputes with franchisees, and what have outcomes been?
#18