The monthly technology fee of $1,100 is approximately 25–30% higher than typical for sports franchises. What specific software, systems, or services does this fee cover, and is it negotiable or subject to adjustment?
#1
Your franchise system has grown from 0 to 2 units in 3 years. What are your growth projections for the next 3–5 years, and do you have a pipeline of signed agreements or letters of intent?
#2
The non-compete restriction is limited to 2 years and 5 miles. How do you protect existing franchisees from competition within these boundaries, and has this limited scope been tested in practice?
#3
Your agreement identifies 14 non-curable termination causes. Can you provide the complete list of these causes and explain why they are classified as non-curable rather than curable with a cure period?
#4
The termination clause offers only 10 days to cure non-payment of fees versus 30 days for other breaches. How frequently have payment issues occurred, and under what circumstances might a franchisee lose the 10-day cure window?
#5
All disputes must be resolved through binding arbitration at your headquarters location. What is the typical cost of arbitration, and have any disputes been arbitrated to date?
#6
The agreement requires personal guarantees from all owners and their spouses covering all franchisee obligations unconditionally. Can you explain the scope of this personal liability and provide examples of what franchisees have been held liable for?
#7
Renewal requires meeting 7 conditions including payment of a renewal fee equal to 25% of the then-current franchise fee. At current fee levels, what would this renewal fee be, and how has this been communicated to existing franchisees?
#8
You require approved suppliers across 6 categories including golf bay technology. Can you disclose which suppliers are approved, the pricing mark-ups controlled by the franchisor, and whether franchisees can request alternative suppliers?
#9
Item 19 shows average gross sales of $291,015. How many franchisees reported this data, what is the range of sales across units, and what timeframe does this represent?
#10
With only 2 current units and no unit-level financial disclosures provided beyond average gross sales, how do prospective franchisees assess profitability and return on their $49,500 plus technology fees investment?
#11
Given the early stage of your franchise system, what support and training infrastructure is in place, and how are systems and processes documented for new franchisees joining a 2-unit system?
#12
The transfer fee is $10,000. Under what circumstances can a franchisee transfer their unit, and does the franchisor have approval rights or right of first refusal?
#13
The franchise agreement requires real estate approval from the franchisor. What are the specific site selection criteria, and who bears the cost if the franchisor rejects proposed locations?
#14
Has the franchisor or any current/former franchisees been involved in disputes, complaints, or regulatory actions that did not result in litigation filings?
#15
Your operational control clause covers point-of-sale software and golf bay technology. Can franchisees customize these systems to meet their specific business needs, or must they be used exactly as configured by the franchisor?
#16
What happens to franchisee rights and obligations if the franchisor is acquired, merged, or substantially restructured?
#17