Given the $1,000/month technology fee that significantly exceeds the typical range for sports and recreation franchises, what specific technology services and platforms does this cover, and how is the fee structured if services are not fully utilized?
#1
Can you provide detailed justification for the 8.5% royalty rate, which exceeds the typical 6.0-8.0% range for this category, and clarify how it compares to your top-performing competitors?
#2
The franchise agreement lists 25 termination causes, above the typical range. Can you provide the complete list of all causes and specify which are considered material versus minor violations?
#3
With a non-compete restriction of 30 miles, which exceeds the typical 10-25 mile range, how is this distance measured and enforced, and do you have case examples of how this has been applied?
#4
Why does the franchise offer no exclusive territory protection despite being a location-based business, and how do you prevent encroachment by other GolfCave franchisees?
#5
Given the small current system size of 3 units, what growth targets exist for the franchise system, and what support will be provided to help achieve multi-unit expansion?
#6
Can you explain the 54 total termination and non-curable causes listed in the franchise agreement and provide examples of which defaults qualify for the 5-day versus 15-day cure period?
#7
What specifically happens upon franchise renewal given the renewal fee equals 25% of the then-current franchise fee, and are there examples of franchisees who have renewed to understand cost impact?
#8
The franchise requires personal guarantees from each owner but mentions spouse guarantees are not required under certain conditions. What are those specific conditions, and are there any exceptions to personal guarantee requirements?
#9
The franchisor retains pricing control rights across 15 categories of required supplier purchases. Can you provide examples of how pricing has been adjusted in the past and what protections exist against unreasonable price increases?
#10
With zero litigation history, zero closures, and zero terminations across 3 years, how many of the current 3 units are original franchisees versus replacements, and what is their satisfaction level?
#11
What operational challenges or market conditions led to the system remaining at 3 units with zero net growth for three consecutive years, and what is the strategic plan for expansion?
#12
How does the $726,684 average gross sales figure translate to franchisee net profit after accounting for the $1,000/month technology fee, 8.5% royalty, and other ongoing costs?
#13
Are there any pending applications, signed but unopened agreements, or franchisees in the pipeline that explain the long pause in unit growth?
#14
Given the broad operational control requirements mandating purchases from designated suppliers across 15 categories, what percentage of franchisee costs are controlled by franchisor-approved vendors versus open market?
#15
The franchise allows up to 2 consecutive 5-year renewals for a 20-year total term. What happens at the end of the second renewal period, and can franchisees continue operating beyond 20 years?
#16
How is the renewal fee of 25% of the then-current franchise fee calculated, and what was the renewal fee amount when the current franchisees renewed (if any have)?
#17
What specific training and ongoing support are provided given the high Support & Training score of 82/100, and how frequently are franchisees required to attend training?
#18
The Territory & Contract score of 35/100 is significantly below the typical 75-85 range. What aspects of the contract terms contributed to this low score, and are you open to modifications?
#19
Can you provide references from all 3 current franchisees and explain why the franchise has not attracted new unit developers in recent years?
#20