Can you provide details on the 3 units that closed in 2023-2024, including their locations, duration in system, and stated reasons for closure?
#1
The contract lists 28 non-curable defaults resulting in immediate termination—significantly above the typical 15-22 for this category. Which defaults are considered most critical, and can any be cured with notice?
#2
Your initial term is 15 years with 35-year total potential term, substantially longer than typical. What support and operational consistency should franchisees expect across this extended period?
#3
How is the $250 monthly technology fee calculated and allocated, and are there circumstances where it could increase beyond this amount?
#4
The investment cost score of 24/100 is far below the typical 75/100 range. What explains this lower cost structure, and what expenses might franchisees underestimate during planning?
#5
Can you clarify the 10 renewal conditions required for the two 10-year renewal options and how often franchisees fail to meet these conditions?
#6
What specific performance metrics or sales targets trigger the 28 non-curable termination clauses, and how are these monitored?
#7
Your renewal fee is $10,000 or 10% of initial franchise fee—whichever is greater. Over the 35-year potential term, how is this structured across the two renewals?
#8
The franchisor controls 8 categories of suppliers including real estate and computers. What markup or profit structures exist on these required purchases, and are alternatives ever permitted?
#9
Given zero terminations to date, what has changed in your operations or franchisee profile that accounts for the 4.9% voluntary closure rate in the past 2 years?
#10
The dispute resolution clause requires binding arbitration with no appeal rights. How many disputes have been arbitrated in the past 3 years, and what were the typical resolution costs?
#11
Can you provide the operational support plan for franchisees during the 15-year initial term, including training refreshes, technology updates, and curriculum changes?
#12
The 2-year, 10-mile non-compete applies to competitive businesses. How is 'competitive' defined, and have there been enforcement actions?
#13
What is your current franchisee satisfaction level, and do you conduct regular surveys or feedback mechanisms that might explain the closure pattern?
#14
For the 7 units added in the past year, what was their average initial investment, and how do their sales trajectories compare to older units?
#15
Your financial performance scores higher than typical for the category. How many units reported data for Item 19, and are they representative of the full system?
#16