I Scream Gelato

Given the franchise has only 8 total units across its system, how long has the franchisor been operating and when were the earliest units opened?

Can you explain the rationale behind the ad fund rate of 1.0%, which is below the typical 1.5-3.0% range for food and beverage franchises? How is the ad fund managed and what specific marketing initiatives does it support?

What is the renewal fee for franchisees at the end of their initial 10-year term, and are there any conditions or performance requirements that must be met to qualify for renewal?

Since termination causes number only 14 compared to the typical 15-20 range, what specific performance or compliance breaches are excluded from the termination clause?

Can you provide details on the 4 categories of supplier restrictions for gelato mix and packaging purchases directly from the franchisor? Are these the only approved suppliers, and what are the pricing mechanisms?

The franchisor retains the right to determine prices charged by franchisees for products—how are these prices set, and what flexibility do franchisees have in establishing their own pricing strategy?

What specific performance metrics or sales thresholds are included in the renewal conditions (5 conditions noted), and what happens if a franchisee does not meet them?

Given the binding arbitration requirement administered by the American Arbitration Association, who bears the costs of arbitration proceedings, and are there any caps on franchisor liability?

The personal guarantee requirement extends to the franchisee's spouse—are there any circumstances under which this guarantee can be released, or does it remain in place for the full contract term?

Can you provide examples of how the indemnification clause has been applied in practice, and what types of losses franchisees have been required to indemnify the franchisor against?

What is the current financial performance of the 8 existing franchisees? Are all units performing above the $676,050 average gross sales, or are there significant variances?

Of the 2 units added in the past year, which of these growth units represent new franchisees versus existing franchisees opening additional locations?

What is the average unit volume (AUV) or unit economics for I Scream Gelato franchises, and how does profitability vary by location type (mall, standalone, etc.)?

Are there any fees or expenses not listed in the franchise agreement that franchisees typically encounter, such as local permits, insurance, or POS system costs?

How is the non-compete clause enforced, and have there been any disputes or attempted violations of the 2-year, 5-mile restriction?

What support and training services are provided to franchisees both pre-opening and ongoing, and are there any additional costs beyond the listed fees?

The franchise has no pending litigation—has there been any litigation in the past (beyond the 3-year period shown) or any informal disputes resolved outside the legal system?

What operational changes or market conditions contributed to the system growing at 26% CAGR, and is this rate of growth expected to continue?

Are there any geographic restrictions on unit expansion, and does the franchisor plan to open additional units in specific markets?

If a franchisee wishes to transfer their unit, can you clarify the process and whether franchisor approval is required in addition to the $10,000 transfer fee?