Can you explain the rationale for the $1,387 monthly technology fee, which is significantly higher than the $200-$500 typical range for fast casual restaurants? What specific technology services and systems does this cover?
#1
Given the franchise has only 2 units currently, what is the franchisor's growth strategy and timeline for expanding the system beyond its current footprint?
#2
The total potential contract term of 15 years is shorter than the typical 20-26 year range for fast casual franchises. Why was this timeframe selected, and would longer renewal terms be negotiable?
#3
What are the 23 non-curable defaults that result in immediate termination without opportunity to cure? Can you provide the complete list and specific examples?
#4
The renewal fee equals 25% of the then-current initial franchise fee. If the initial franchise fee increases significantly, how would this impact renewal decisions for existing franchisees?
#5
What specific training and operational support does the 'Support & Training' score of 99/100 reflect, and what ongoing support is provided post-opening?
#6
With zero litigation cases in the past 3 years despite an expanding system, have there been any disputes resolved outside of formal litigation or arbitration?
#7
Can you detail the conditions required for renewal? How frequently do franchisees fail to meet the 7 stated renewal conditions, and what compliance rates has the system achieved?
#8
Are personal guarantees from spouses required if only one spouse is listed as the principal owner or operator?
#9
What is the breakdown of the average gross sales of $1,173,598? How is this distributed between company-operated units versus franchised units, if any company units exist?
#10
Given the 5-day cure period for monetary and non-monetary defaults, what constitutes a 'non-monetary violation' and how is the 5-day timeline determined for remediation?
#11
Has the franchisor ever terminated a franchise agreement, and if so, what were the primary reasons and outcomes for those franchisees?
#12
The current unit count has remained stable at 2 units for at least the past year. What marketing and recruitment efforts are underway to attract new franchisees?
#13
Can you provide the Item 19 financial performance disclosure document showing the average gross sales, operating expenses, and net income data for comparable units?
#14
What happens to the franchisee's non-compete obligation if the franchisor elects not to renew after 10 years? Does the 2-year/10-mile restriction still apply?
#15
Are there any circumstances under which the non-compete clause could be modified or waived, such as for underperforming locations or mutual agreement?
#16
How are territory boundaries determined, and what specific protections exist to prevent the franchisor from encroaching with company-operated or franchised locations in protected territories?
#17
What is the historical rate of franchisee renewal versus non-renewal, and what are the primary reasons franchisees have chosen not to renew in the past?
#18
Given the system's early stage with only 2 units, what contingency plans exist if one franchisee closes or decides not to renew?
#19