Can you provide detailed financial performance data (Item 19) showing median and average unit volumes for franchisees, and explain why this information is not currently disclosed?
#1
The franchise has grown from 3 units to 15 units in 3 years with zero exits. How many of the current 15 units are franchisee-operated versus company-owned, and what is the breakdown by unit type?
#2
Given the exceptional 200% growth rate in the past year, what geographic markets are these new units entering, and are there any planned unit closures or consolidations in underperforming locations?
#3
The ad fund rate of 1.0% is significantly below the typical 1.5-3.0% range for fast casual restaurants. How is the ad fund utilized, and what marketing support can franchisees expect with this lower contribution rate?
#4
Why is the total potential term limited to 10 years when the typical range for this category is 20.0-26.25 years? Are there renewal options available, and under what conditions?
#5
The non-compete clause specifies 25 miles, which exceeds the typical 5.0-20.0 mile range. Can you explain the rationale for this broader radius, and how is it enforced post-termination?
#6
The franchise fee of $30,000 is below the typical $35,000-$40,000 range, while the transfer fee of $5,000 is below the typical $8,750-$20,000 range. How are these fees calculated, and are there any hidden costs not reflected in these figures?
#7
With zero terminations on record, what specific performance metrics or sales thresholds trigger the 11 termination causes listed in your agreement?
#8
The support and training score of 86 is below the typical 90.0-100.0 range for this category. What specific training and ongoing support programs are provided to franchisees, and how frequently are they updated?
#9
Can you provide references from existing franchisees in different geographic markets, particularly those who opened in the past 2 years during the rapid expansion phase?
#10
The binding arbitration clause requires Illinois, Maryland, and Washington State residents to waive class action rights. How many franchisees currently operate in these states, and have any disputes arisen under this clause?
#11
The unlimited personal guarantee and indemnification clause places significant liability on franchisees. Can you clarify what specific obligations trigger this guarantee and provide examples of claims made against franchisees?
#12
Given the rapid expansion from 5 to 15 units in one year, what quality control measures are in place to maintain brand standards, and have there been any customer complaints or food safety issues?
#13
The investment costs score of 89 is above the typical 73.0-77.25 range. What is the total initial investment required (build-out, equipment, working capital), and how does this compare to similar fast casual concepts?
#14
Why does the franchise not currently provide Item 19 financial performance data? Are there plans to disclose this information, and what would be the estimated costs and revenues for a typical unit?
#15
With the non-compete clause specifying 2 years and 25 miles, can a franchisee who exits operate a competing quick-service restaurant within that radius after the 2-year period, or are there additional restrictions?
#16
The renewal fee is $2,500, but the initial franchise fee is $30,000. What changes, if any, are required upon renewal, and is the territory guaranteed to remain exclusive upon renewal?
#17
Have there been any disputes with franchisees regarding territory encroachment, advertising fund usage, or operational compliance, and if so, how were they resolved?
#18