Häagen-Dazs Shop

The advertising fund rate of 999.99 appears unusually high compared to the typical 1.5-3.0% range for food and beverage franchises. Can you clarify how this rate is calculated and what specific marketing activities and media channels it funds?

Your royalty rate of 4.0% is below the typical 5.0-6.0% range for this category. Does this lower rate reflect a recent change, and are there any plans to adjust it in future renewals?

The system has declined by 2 net units over the past year. Can you provide the specific reasons for the 11 unit closures in 2024 and clarify whether any were due to voluntary exits versus franchisor actions?

The non-compete restriction of 2 miles is substantially below the typical 5.0-23.75 mile range. How does this narrower radius protect franchisees from direct competition, and what competitive pressures have you observed in these limited territories?

Your agreement lists 25 termination causes, exceeding the typical 15.0-20.0 range. Can you provide a breakdown of which causes are most frequently cited in practice, and how many have resulted in actual terminations over the past 3 years?

With a System Health score of 43/100, significantly below the typical range of 50.0-75.0%, what specific operational or financial challenges is the system currently facing?

Can you explain the discrepancy between the termination rate of 0.0% and the agreement's specification of cure periods ranging from 24 hours to 30 days? Have terminations been pursued under different legal theories?

The renewal fee is listed as the greater of $10,000 or 50% of the then-current franchise fee. If the franchise fee increases substantially, could renewal become prohibitively expensive for existing franchisees?

Complete shop remodeling may be required at renewal. What are the typical costs associated with these remodels, and are there any financing programs or allowances provided by the franchisor?

Territory is marked as protected but not exclusive. Can the franchisor open additional Häagen-Dazs locations within my 2-mile non-compete area after my initial term expires or during renewal negotiations?

Of the 207 current units, how many have renewed at least once, and what percentage of franchisees chose not to renew or were unable to meet renewal conditions?

The indemnification clause requires franchisees to defend the franchisor from third-party claims. Does this obligation apply even if the franchisor is partially at fault, and what are typical insurance cost ranges franchisees should budget for?

Given the $85 monthly technology fee, what specific systems and support does this cover, and have these fees increased since franchises in your system originally opened?

The agreement specifies cure periods as short as 24 hours for material defaults. Can you provide examples of what constitutes a material default with a 24-hour cure period versus defaults with longer cure periods?

With zero terminations recorded in the 3-year period but 25 possible termination causes listed, are there alternative enforcement mechanisms (fines, suspension of support, etc.) the franchisor uses before pursuing termination?

The average gross sales of $704,198 in Item 19 data—how many units reported this information, and what percentage of the current 207-unit system does this represent?

Have there been any class actions or regulatory investigations involving Häagen-Dazs franchisees regarding fee transparency, advertising fund usage, or operating requirement compliance?

The transfer fee of $7,500 plus potential renewal negotiations—if a franchisee wants to sell before lease expiration, what additional franchisor-imposed transfer costs or approval delays should they expect?

System decline of -0.96% over the past year—are specific regional markets experiencing worse performance, and what guidance does the franchisor provide to franchisees in underperforming territories?

Commercial general liability insurance is required with minimum limits—what are those specific minimum limits, and have any claims against franchisees resulted in franchisor involvement or indemnification claims?