Can you provide detailed historical data on all unit exits prior to 2022, including any closures or terminations that may have occurred during the franchise system's earlier years?
#1
Given the system's rapid growth rate of 108% CAGR over 3 years, what is the breakdown of this growth between new franchisees opening units versus organic expansion by existing franchisees?
#2
The contract lists 25 termination causes, which is above the typical range of 15-20. Can you explain which specific termination triggers are most frequently used or considered critical?
#3
Why is the non-compete period only 1 year when the typical range for Quick Service Restaurants is 2 years? What protection does the 50-mile radius provide given this shorter timeframe?
#4
The renewal conditions count of 11 exceeds the typical range of 7-9. Can you provide a detailed breakdown of all 11 renewal conditions and explain which are mandatory versus discretionary?
#5
Item 19 Financial Performance data is not included in the Franchise Disclosure Document. What sales, revenue, or financial performance information is available for existing franchisees, and why is Item 19 not being provided?
#6
With a 0% turnover rate, can you explain what happens to underperforming units and whether any franchisees have chosen to exit the system through voluntary sale or closure?
#7
The Investment Costs score of 60 is below the typical range of 69-78. What additional costs beyond the stated $30,000 franchise fee and $180 technology fee should franchisees expect during startup?
#8
Can you provide a list of all franchisor-approved distributors and suppliers across the 5 restricted categories, including current pricing and whether the franchisor receives rebates or commissions from these suppliers?
#9
The renewal fee equals 50% of the then-current initial franchise fee. How is the 'then-current' fee determined, and what happens if a franchisee cannot afford the renewal fee after their initial 10-year term?
#10
What specific refurbishment requirements must be met during renewal, what is the estimated cost, and what happens if a franchisee cannot meet these conditions?
#11
All disputes must be resolved through binding arbitration in Dover County, Delaware. Why was Delaware chosen, and what is the average cost and timeline for arbitration cases filed by franchisees?
#12
Personal guarantees and spouse guarantees are required. If a spouse guarantee is required, what specific liabilities do spouses assume, and can they be limited or waived?
#13
Given the system's protected but non-exclusive territory, can the franchisor open additional German Doner Kebab locations near an existing franchisee's location without compensation?
#14
The operational control section specifies 5 categories of supplier restrictions. Beyond price controls, what other restrictions apply, and can franchisees negotiate volume discounts directly with approved suppliers?
#15
What is the current average unit volume (AUV) or typical gross sales for the 9 operating units, and are these figures broken down by unit age or location?
#16
With mandatory non-binding mediation before arbitration, what are the typical outcomes when franchisees attempt mediation, and is mediation cost shared equally?
#17
Can you provide the complete list of all 25 termination causes in rank order by frequency of actual use in the past 3 years?
#18