Infinilush Company Limited (CoCo/Doka)

The technology fee of $400/month is approximately 33% higher than the typical range for this franchise type—what specific services and technology platforms justify this premium fee level?

Your royalty rate of 2.0% is significantly below industry standard of 5.0-6.0%—are there any volume-based increases or performance thresholds where royalty rates increase?

The ad fund rate of 4.0% exceeds typical ranges; how is this fund allocated and what marketing results or brand development initiatives can franchisees expect from this contribution?

The system declined by 1 unit (-2.86%) over the past year despite no terminations; what factors are driving these voluntary departures, and what changes are being made to improve unit retention?

Two additional closures occurred in 2024 compared to 2023—can you provide details on the reasons behind these closures and whether they reflect unit underperformance or franchisee personal circumstances?

Given the 31 termination causes in the agreement (nearly double the typical 15-20), which causes are most frequently cited in practice, and under what circumstances has the franchisor actually enforced termination provisions?

The initial term of 5 years is shorter than the typical 7.75-10.0 years, and the renewal term is only 3 years—what is the rationale for these shorter terms, and how difficult is it to renew beyond the initial 8-year total potential?

Territory protection is noted but territory is non-exclusive—what specific protections exist against franchisor encroachment, and have any disputes arisen regarding territory boundaries or competing locations?

The renewal conditions include mandatory remodeling to current System Standards; what are typical costs for these mandatory remodels, and can you provide examples of recent remodeling investments required from franchisees?

Personal guarantees are required from all franchisee owners and spouses for all indebtedness to the franchisor and affiliates—what is the typical scope of affiliate indebtedness, and are there limitations on this personal guarantee?

All disputes must go to binding arbitration within 50 miles of the franchisor's headquarters with class action and jury trial waivers—what has been the franchisor's track record in arbitration cases, and what costs should franchisees expect for arbitration?

The post-term non-compete is 2 years without a specified mileage radius; what is the practical geographic scope of this restriction, and how has the franchisor enforced non-competes in the past?

Late fees for missing required financial statements are 2% of preceding month's Net Sales per day—can you provide examples of franchisees who have incurred these fees and typical amounts assessed?

System Health score is only 28/100, significantly below typical ranges—what specific metrics or operational issues are driving this low score, and what improvement plans are underway?

Contract Terms score of 53/100 is below typical range of 60-65%—which contract terms are most unfavorable to franchisees, and are any contract modifications available during negotiation?

No Item 19 financial performance disclosure is provided; what financial performance data can franchisees expect to receive during the franchise disclosure and discovery process?

Can you explain the logic behind the low 2.0% royalty rate relative to high ongoing fees—are there plans to adjust royalty rates or could royalties increase if unit performance improves?

Of the 2 closures in 2024, were these attributable to franchisee underperformance, market conditions, or strategic franchisor decisions to reduce system size in specific territories?

What is the average unit volume for operating units, and how does franchisee profitability compare between locations in different market types (urban vs. suburban vs. mall-based)?

The system has grown from 31 units in 2022 to 34 in 2024 with recent decline—what is the franchisor's growth strategy, and should prospective franchisees expect stable or growing unit counts in coming years?