Why is the transfer fee set at $30,000 when the typical range for this category is $8,750-$20,000, and what specific services or approvals justify this higher cost?
#1
Can you provide documentation explaining the 25 termination causes listed in the franchise agreement, and which ones are considered most material to system operations?
#2
The non-compete restriction extends 25 miles, which exceeds typical ranges—what is the business rationale for this broader geographic restriction?
#3
How do you justify the franchise fee of $30,000 when competing fast casual restaurant franchises typically charge $35,000-$40,000?
#4
Why is the monthly technology fee only $100 when industry standards for this category typically range from $200-$500?
#5
Given that the system has only 1 unit, how long has this franchise been operating, and what is your growth strategy for unit expansion?
#6
Has the single current unit been profitable, and can you provide financial performance data or Item 19 documentation?
#7
What specific encroachment protections are provided to franchisees, and have there been any disputes regarding territory despite the 'protected but non-exclusive' designation?
#8
Can you clarify the renewal fee structure—you mention a $15,000 renewal fee separate from the transfer fee—when would each apply?
#9
The agreement requires spouses of franchisees with 5% or greater interest to provide personal guarantees—what assets are at risk, and are there limitations on the indemnification scope?
#10
The renewal conditions include payment of a successor franchise fee equal to 50% of the current franchise fee—is this in addition to the stated $15,000 renewal fee?
#11
What are the 8 categories of supplier restrictions mentioned, and do they include proprietary items that generate significant margin for the franchisor?
#12
Can the franchisor adjust pricing on required proprietary purchases, and have there been historical price increases that exceeded inflation?
#13
Why does the Territory & Contract score of 60 fall below the typical range of 75-88.75 for fast casual restaurants, and what specific factors contributed to this lower rating?
#14
The Investment Costs score of 84 exceeds the typical range—what components of the investment model are particularly favorable compared to competitors?
#15
Are there any historical litigation cases, complaints to franchise regulators, or franchisee disputes not reflected in the current data?
#16
What support and training does the franchisor provide given the 95/100 Support & Training score, and are these services included in fees or charged separately?
#17