HHC

Can you provide details about the 1 case initiated against the franchisor in the past 3 years, including the nature of the dispute and its current status or resolution?

The franchise fee of $50,000 exceeds the typical range for quick service restaurants—what specific value or services justify this premium pricing compared to competitors?

Given the exceptional 66.3% three-year growth rate and 76.9% one-year growth, what geographic markets are driving this expansion and are there plans for further unit growth?

The contract specifies 25 termination causes, significantly above the typical 15-20 for this category. Can you identify which causes carry the highest risk for franchisees and provide examples of how they are enforced?

The non-compete restriction extends 15 miles, above the typical 5-10 mile range. How strictly is this enforced post-termination, and have there been cases where franchisees faced legal action for violations?

You reported zero turnover and zero terminations in the past year. How do you define and track these metrics, and does this account for franchisees who exited voluntarily or ceased operations?

What was the reason for the 1 termination in 2023 and the 2 unit exits in 2022, and what steps has the franchisor taken to prevent similar exits?

The agreement requires exclusive purchases from approved suppliers and limits menu items to franchisor-approved selections. What is the markup on supplier products, and can franchisees negotiate pricing or supplier terms?

Can you provide a breakdown of the 17 non-curable defaults that trigger automatic termination without cure opportunity? How do these compare to industry standards?

The agreement requires spouses to personally guarantee all financial obligations regardless of ownership stake. Can this guarantee be limited or negotiated, and what is the franchisor's history of enforcing spousal guarantees?

What support and training does the franchisor provide to new franchisees, and are there ongoing training or operational support fees beyond the listed $400 technology fee?

The renewal fee is $5,000 and transfer fee is $12,500. Are these fees used to fund operational updates or system improvements, and are they subject to annual increases?

With exclusive territories in place, what is the franchisor's policy on encroachment, and have there been disputes with franchisees over territory violations?

Can you explain the significant variance between the Investment Costs score (52/100, below range) and the Territory score (85/100, above range)? What does this suggest about total investment requirements versus territorial protections?

The dispute resolution clause requires binding arbitration through the American Arbitration Association. What are typical costs and timelines for arbitration in previous disputes, and are there any pending arbitrations?

How does the franchisor determine minimum and maximum operational standards referenced in the Operational Control clause, and what penalties apply for non-compliance?

Given the rapid growth to 23 units, what quality control and brand consistency measures are in place across the system, and have you received any customer complaints or franchise feedback about inconsistencies?

The franchise agreement allows termination with as little as 0 to 30 days to cure for certain defaults. Can you provide examples of defaults that allow zero days to cure and explain the business rationale?