Jet's Pizza

Your royalty rate of 12.0% and ad fund rate of 10.0% significantly exceed typical QSR ranges. Can you explain the justification for these rates and what specific services, marketing reach, or support justify the 22.0% combined ongoing fee burden?

Item 19 financial performance disclosures are not provided. Can you share unit-level financial performance data, including median and average gross sales, number of reporting units, and net profit ranges by unit age and location type?

What specific services and support does the 10.0% ad fund cover, and how is ad fund allocation determined between franchisor marketing, national campaigns, and local market development?

Can you detail the circumstances surrounding the 2 litigation cases initiated against the franchisor over the past 3 years, including case status, outcomes, and whether these issues have been resolved or addressed in the franchise agreement?

Your renewal conditions total 10 items versus the typical 7-9. Can you itemize all 10 renewal conditions and clarify whether these conditions are material requirements or administrative checkpoints?

The non-compete clause specifies 3 years post-termination, exceeding the typical 2-year period. What is the rationale for extending the non-compete period, and how actively does the franchisor enforce this restriction?

Your franchise agreement designates 16 non-curable defaults. Can you provide the complete list of these defaults and explain why franchisees have no opportunity to remedy violations in these categories?

Can you explain the selection criteria and process for franchisor-approved suppliers for leasehold improvements, furniture, fixtures, and equipment, and whether franchisees can negotiate pricing or source alternatives?

The minimum monthly royalty of $1,200 applies regardless of sales. What percentage of franchisees typically hit this minimum threshold, and what is the average unit volume relative to this minimum?

You require 1.5% monthly interest on late payments plus 1.5% late fees. Given these compounding charges (18% annualized plus additional fees), have you considered offering payment plans or grace periods for franchisees experiencing temporary cash flow issues?

Can you detail the 5 units that closed in 2022 versus the 3 units that closed in 2024? Were these closures due to franchisee financial underperformance, franchisor termination, franchisee decision, or external factors?

What does 'Ceased Other' represent in your unit history data, and how many units in this category may be temporarily inactive versus permanently exited?

The binding arbitration clause requires all disputes to be resolved in Southfield, Michigan. For franchisees located outside Michigan, what are the estimated costs and logistical challenges of participating in arbitration at this location?

Your dispute resolution requires waiver of jury trial and class action rights. Have any arbitration disputes arisen, and what was the average cost and timeframe for resolution?

Can you provide details on the 2 transfer cases and 14 transfers in 2024? Were these approved transfers or situations where franchisees sold units without franchisor consent?

The franchise agreement requires joint and several personal guarantees from beneficial owners with 10% or greater interest. How does this personal guarantee limit affect franchisees' ability to access financing or secure favorable loan terms?

What specific marketing and brand development initiatives are funded by the 10.0% ad fund, and can you provide an example media plan or annual marketing calendar showing how these funds are deployed?

Can you clarify the 4-year renewal fee of $4,000 and any other fees associated with renewal beyond the renewal fee itself?

System Health scores 77/100 (above typical range) while Contract Terms score 55/100 (below typical range). Can you address what contract provisions or terms are considered unfavorable to franchisees?

Have any franchisees requested modifications to the non-compete clause, territory exclusivity, or renewal conditions, and if so, how flexible is the franchisor in negotiating these terms?