Given the transfer fee of $2,000 is significantly below the typical range of $8,937.50-$18,437.50 for Sports & Recreation franchises, what services or administrative costs does this fee cover, and are there additional hidden transfer costs?
#1
The total potential contract term is 10 years versus the typical 20 years for this franchise category. Can you explain the reasoning behind this shorter term structure and what happens after the initial 10-year term expires?
#2
With only 5 renewal conditions compared to the typical 6.0-8.0 range, what are the specific conditions required for renewal, and are there any conditions that could result in non-renewal?
#3
The termination causes count at 13 is below the typical range of 15.0-21.75. Which specific termination causes does the franchisor reserve, and are there any auto-renewal provisions or default notice periods?
#4
Can you provide Item 19 financial performance data for the single operating unit or a larger sample of units to validate the reported gross sales of $1,065,695?
#5
Given the contract specifies mandatory binding arbitration at the franchisor's headquarters location, what are the typical arbitration costs franchisees have incurred, and are there any fee caps or limitations?
#6
The franchise agreement requires all owners to provide personal guarantees without limitation. What specific scenarios would trigger enforcement of these guarantees beyond franchise operation performance?
#7
Regarding vendor requirements and pricing controls, can you provide examples of how minimum, maximum, or exact pricing has been implemented, and what recourse exists if franchisees dispute franchisor pricing decisions?
#8
The 2-year post-term non-compete restriction applies to any ownership interest, employment, or lending related to competitors. How does the franchisor define 'competitors' and what geographic area does this restriction cover?
#9
With zero litigation cases reported, has the franchisor received any formal complaints, disputes, or regulatory inquiries from franchisees or government agencies in the past 3 years?
#10
The system currently contains only 1 unit. How long has the franchise been operating, and what is the growth plan and timeline for adding additional franchised units?
#11
What support, training, and ongoing services are included given the franchise's Support & Training score of 90/100, and how are these services delivered with only a single franchisee?
#12
The royalty rate is 7.0% with no ad fund rate specified. Are franchisees required to contribute to any marketing, advertising, or technology costs separately, and if so, how are these calculated?
#13
Can you provide the renewal fee amount and any other costs associated with contract renewal, which are currently listed as not available?
#14
Given the financial performance score of 87 exceeds the typical range, are these results based on the single operating unit's performance, and would similar financial results be realistic for a new franchisee?
#15
What happens if the single current franchisee terminates or does not renew—does the franchisor have plans to continue franchising or does the system rely on this one unit?
#16
The non-compete radius is listed as not applicable. Does this mean the 2-year restriction has no geographic limit, or is the radius determined on a case-by-case basis?
#17
Are there any ongoing technology, software licensing, or proprietary system access fees not reflected in the stated 7.0% royalty rate?
#18