Can the franchisor provide details on the 4 litigated cases where it was named as defendant, including the nature of claims, outcomes, and whether any settlements or judgments were entered?
#1
What specifically drove the closure of 14 units in 2022, and what measures has the franchisor implemented to address the underlying causes?
#2
The franchise fee of $50,000 is $12,500-$25,000 higher than typical for quick service restaurants—what additional value or support justifies this premium pricing?
#3
Why is the technology fee of $70/month substantially lower than the typical range of $110-$408/month, and what technology systems are included at this rate?
#4
Can you explain the discrepancy between the Investment Cost score of 59/100 (below typical range) and the higher-than-typical franchise fee and technology fee structure?
#5
Given the 3-year CAGR of -6.2% and 17.4% turnover rate, what specific initiatives is the franchise implementing to reverse unit decline and improve franchisee retention?
#6
How many of the 4 closed units in the last 3 years were unable to meet their financial obligations, and were there any patterns in location type, geography, or franchisee background?
#7
The total potential contract term of 35 years exceeds typical ranges—what are the specific conditions for each 10-year renewal, and what percentage of current franchisees have renewed at least once?
#8
The agreement classifies 16 defaults as non-curable versus only 1 as curable—can you provide a complete list of which defaults are non-curable and the franchisor's enforcement history on each?
#9
What is the actual percentage of current franchisees meeting the 'substantial compliance' renewal condition, and how is substantial compliance defined and evaluated?
#10
Can you provide the history and resolution status of the 1 pending litigation case, and explain what claims are involved?
#11
The non-compete restriction of 2 years/5 miles applies to locations operated under the franchisor's marks—does this extend to other casual dining brands the franchisor may operate?
#12
How many spouses have been required to personally guarantee franchise agreements, and are there any exemptions or modifications available?
#13
Given that average gross sales of $1,643,107 exceed typical ranges, what is the range of sales performance across franchisees, and what percentage achieve above-median sales?
#14
Can you explain why the Contract Terms score of 70/100 is above typical range when multiple legal clauses were scored as 4-5 and franchisor-favorable?
#15
The binding arbitration clause requires proceedings in the county of franchisor headquarters—what are the franchisor's headquarters location and typical arbitration costs franchisees have incurred?
#16
What is the franchisee approval process for unit transfers, and how many transfer requests have been denied in the last 3 years?
#17
The renewal fee is 40% of the then-current franchise fee—if the current $50,000 fee increases, how is the renewal fee adjustment calculated or capped?
#18
Can you provide the contact information for at least 10-15 current franchisees operating units for 3+ years, including some from both strong and struggling locations?
#19