The technology fee of $1,600 monthly is 3-4 times higher than the typical range for fast casual restaurants. What specific technology services and platforms are included in this fee, and is this fee subject to increases?
#1
Your franchise fee of $45,000 is above the typical range for this category. What additional services, training, or benefits does this higher fee provide compared to competitors?
#2
The transfer fee of $3,500 is significantly lower than the typical range of $8,750-$20,000. Are there any additional costs or conditions associated with unit transfers that prospective franchisees should be aware of?
#3
Your system has grown from 5 units to 13 units in 3 years at a 37.51% CAGR. What is the franchisor's growth strategy and timeline for the next 2-3 years?
#4
With zero litigation history, can you provide details on how you have managed franchisee relationships and dispute resolution to maintain this record?
#5
The non-compete radius of 3 miles is narrower than typical. How does this affect franchisees' ability to operate multiple units or expand within their local market?
#6
Item 19 (financial performance representations) is not included in the FDD. Will the franchisor provide unit-level financial performance data or references from existing franchisees?
#7
What are the specific 8 renewal conditions required at the end of the initial 10-year term, and what is the estimated cost to meet these conditions?
#8
How many of your current 13 units are company-owned versus franchisee-owned, and what is the breakdown of unit types (company locations, area developers, single-unit franchisees)?
#9
Can you provide contact information for at least 10 existing franchisees, including some from the original 5 units opened 3 years ago, to discuss their experience?
#10
The termination causes count of 12 is below typical. What are the specific grounds for termination, and have any of these grounds been invoked in the system's history?
#11
The franchise agreement mentions cure periods of 5-30 days for various defaults. Can you clarify which specific breaches allow for cure and which result in immediate termination?
#12
Personal guarantees are required from direct and indirect owners. Are there any limitations on the number of owners or conditions under which the personal guarantee can be released?
#13
What is the actual average unit volume (AUV) or median gross sales for your existing units, and how do these compare to other fast casual restaurants?
#14
Your 2-year non-compete at 3 miles is restricted compared to typical ranges. What happens if a franchisee leaves the system before their 10-year term expires?
#15
The renewal fee is $15,000. Beyond this fee, what additional capital investment is required to renew the franchise and meet the equipment replacement and updating conditions?
#16
Has the franchisor ever refused to renew a franchisee's agreement, and if so, what were the reasons and outcomes?
#17
What specific support, training, and operational assistance is provided during the initial 10-year term and what changes at renewal?
#18
Can you explain the significant gap between your Investment Costs score of 0/100 and typical scores of 73.0-77.25? What disclosure or cost factors contributed to this rating?
#19
What is the franchisee's financial exposure under the indemnification clause, and are there caps on indemnification or franchisor liability limitations in the agreement?
#20