What accounts for the significantly higher gross sales ($4.3M median) compared to other quick service restaurants in the category, and are these figures consistent across all unit types and markets?
#1
The franchise agreement lists 21 termination causes, above the typical range of 15-20. Can you provide a detailed breakdown of these 21 causes and clarify which are curable versus non-curable?
#2
Given zero unit turnover over 3 years, can you provide historical turnover data beyond 2022 to establish whether this is a recent trend or long-standing pattern?
#3
The transfer fee of $20,000 exceeds the typical range significantly. What does this fee cover, and are there separate approval or assignment fees in addition to this amount?
#4
Why is the franchise fee set at $40,000, above the typical range of $25,000-$37,500, and what additional value or services justify this premium pricing?
#5
The initial term of 20 years is double the typical 10-15 year range. What is the rationale for this extended commitment, and are there early termination provisions if the unit underperforms?
#6
You mention renewal requires payment of 50% of the then-current initial franchise fee. How frequently has the initial franchise fee been increased since the franchise system launched?
#7
The non-compete restriction covers 5 miles and 2 years post-termination. How is this radius determined, and does it apply uniformly across all markets regardless of territory type or population density?
#8
The agreement requires binding arbitration in Colorado on an individual basis with class action prohibition. What is the typical cost and timeline for arbitration disputes, and how many disputes have proceeded to arbitration in the past 3 years?
#9
All disputes require arbitration in Colorado; if you are located elsewhere, what are the logistical and financial implications for pursuing a claim?
#10
The agreement prohibits sourcing from unapproved suppliers across 8 specified categories. Can you provide the list of approved suppliers and explain the approval process for alternative suppliers?
#11
Does the franchisor set pricing controls on approved products and services, and if so, what margins or markups are guaranteed to franchisees?
#12
Are spouses required to personally guarantee the franchise agreement even if they are not involved in operations, and what are the specific obligations and liability they assume?
#13
With 77 current units, how many are company-owned versus franchised, and what percentage of system revenue comes from each?
#14
The unit growth of 8.45% (6 new units in 1 year) exceeds typical ranges. Are these all new franchises, conversions, or a mix, and are there pipeline commitments for additional units?
#15
What specific operational improvements or market conditions were necessary to achieve sales figures 3-5 times higher than typical quick service restaurants?
#16
The renewal conditions require meeting 7 specified conditions. What are these conditions, and in how many cases have franchisees been denied renewal despite meeting contractual minimums?
#17
Given the emphasis on franchisor-approved suppliers and operational control (scored 4/5 franchisor-favorable), what flexibility exists for franchisees to modify menus, pricing, or operations based on local market conditions?
#18
Does the system provide any exclusive territory or encroachment protection since territory is marked as non-exclusive, and how does the franchisor manage new unit placement relative to existing locations?
#19
What support and training are provided post-opening, and are there ongoing technology or platform fees beyond the stated 5% royalty and 4% ad fund?
#20