Golf Envy

The ad fund rate of $300 (or 300 basis points) is significantly above the typical range of 1.0-2.0% for sports and recreation franchises. How is this ad fund amount calculated and what specific marketing initiatives does it support?

With only 2 current franchised units, how does the franchisor plan to scale the system, and what are the financial projections for unit growth over the next 3-5 years?

The franchise has experienced 100% unit growth in the past year. Is this growth rate expected to continue, and what support systems are in place to accommodate rapid expansion?

The franchise agreement requires minimum royalties of $12,500 per measurement period. How frequently are these measurement periods, and what happens if a unit fails to meet this threshold?

Interest on late payments is set at 18% per annum. How often does the franchisor experience late payments, and what is the typical payment compliance rate among current franchisees?

The agreement allows termination for payment defaults with only a 10-day cure period. Can you provide examples of how this has been applied, if at all, among current franchisees?

All disputes must be resolved through binding arbitration with a class action waiver. Has the franchisor or any franchisees ever pursued arbitration, and if so, what were the outcomes?

Personal guarantees are required from all direct and indirect owners and their spouses. How is spousal liability enforced in practice, and are there any limitations or exclusions to this requirement?

The franchise requires exclusive use of approved suppliers and vendors. Provide a complete list of approved suppliers for all major product categories and the process for requesting exceptions or alternatives.

The territory is protected but not exclusive, and the franchisor has encroachment protection rights. Has the franchisor ever added units or authorized competitors within existing franchisee territories?

With zero litigation history over 3 years, are there any disputes currently in negotiation or settlement discussions that are not reflected in formal legal filings?

What is the current ownership structure of the franchisor, and are there any pending changes in ownership, financing, or corporate structure?

Item 19 shows average gross sales of $339,761, but no units reporting figure is provided. How many of the 2 current units provided financial data for this calculation, and what was the range of performance?

The transfer fee is $10,000. Beyond this fee, what are all other costs associated with transferring a franchise to a new owner?

Non-compete restrictions are 2 years and 10 miles. Are there any other restrictions on post-exit activity, and how aggressively does the franchisor enforce these restrictions?

The franchisor can set maximum or minimum pricing unless prohibited by law. What pricing guidance or controls currently exist for franchisees, and how flexible is pricing decisions in local markets?

Given the early-stage nature of the system (only 2 units), what franchisor-provided support infrastructure exists for training, operations, marketing, and technology?

Are all 2 current units company-owned or franchised, and if any are company-owned, when does the franchisor plan to franchise them?

The franchise fee is $45,000. What is the typical total startup investment range for franchisees including real estate, equipment, inventory, working capital, and other costs?

What financial performance benchmarks or targets are expected of franchisees during the initial ramp-up period, and how does the franchisor support underperforming units?