Given the exceptional 51.8% three-year growth rate, what is the franchisor's pipeline for new unit development over the next 2-3 years, and is this growth sustainable?
#1
With zero litigation cases in 3 years and zero unit exits, how many franchisees have been active since the system inception, and what percentage of original franchisees remain active?
#2
The Territory score of 65 falls below the typical range—can you clarify what specific territorial protections are NOT included despite the territory being marked as 'protected'?
#3
Item 19 shows median gross sales of $664,719—how many units reported this data, what was their operational tenure (full year or partial), and what is the range of performance across reporting units?
#4
The renewal conditions mention mandatory remodeling to current standards with no cost cap—what is the estimated cost range for this remodeling, and can franchisees request alternative compliance methods?
#5
Can you provide the names and contact information for current and former franchisees, particularly any who have exited or renewed, so due diligence can be conducted directly?
#6
The non-compete covers 'any business offering customers the ability to smash household items'—how broadly is this interpreted, and what other entertainment or recreation businesses fall within this restriction?
#7
Support & Training scores 95 (above typical range)—can you detail the specific training programs, ongoing support hours, and any costs associated with additional training beyond the initial franchise fee?
#8
With only 7 current units and rapid growth, what is the franchisor's strategy for maintaining quality control and brand consistency as the system scales?
#9
The dispute resolution clause requires binding arbitration in Monroe County, New York—does this create cost or logistical barriers for franchisees located outside New York, and are there any precedent cases available for review?
#10
Joint and several liability for all franchise obligations means personal guarantees—what specific obligations are franchisees guaranteeing, and are there limits or caps on franchisor recourse?
#11
General liability insurance minimum is $1,000,000—is this requirement unique to this franchise, and are there any claims history or loss runs from existing franchisees available for review?
#12
The termination clause allows 10 days to cure payment defaults—what triggers payment default (e.g., late royalty payments), and what penalties or late fees apply before termination proceedings begin?
#13
Given the 2-year, 25-mile non-compete applies post-termination, how is 'termination' defined—does this apply to voluntary exits, non-renewals, or franchisor-initiated closures?
#14
The renewal fee is $5,000 with mandatory remodeling—what are the conditions under which renewal could be denied, and has any franchisee been denied renewal in the system's history?
#15
Territory is protected but not exclusive—can the franchisor open company-owned locations or approve franchisees in the same territory, and if so, what notice or approval is required?
#16
With zero transfers recorded, what is the franchisor's policy on franchisee ownership changes, family transfers, or sale to third parties, and what approval and fee structure applies?
#17
The Turnover & System Data shows 75% net unit growth in one year—what percentage of this growth is from new unit sales versus existing unit expansion or relocation?
#18
Can you explain the Investment Cost score of 74 (just below typical range of 75.0)—what specific costs are excluded from the $54,950 franchise fee that franchisees should budget for separately?
#19
How long has the system been in operation, and what portion of the 7 current units are franchisee-owned versus franchisor-owned or test units?
#20